This article today regarding Syria's under siege President Assad declaring all other currency illegal accept the Syrian "lira" newly underscores the need for global controls and a global currency as a defense against nationalistic despotism and tyranny over whole economies.
As I have been repeatedly discussing these past few years in this blog, the world's biggest problem from the governance side is the manipulation and controls of economies by shadow governments and organizations whose only business is trying to control or isolate their populations from free trade and traditional economic systems. This is the first "trick" that historic dictators have used to "control" their people and countries. If they can control the economy and flow of monies, they figure they have a better chance controlling their followers and of course buying the weapons they need to defend...their power.
Of course, the big elephant in the room is that simply "declaring" a fiat currency to be worth something doesn't necessarily make it so. The only argument that explains the continued domination of the US dollar in its value and use as a global currency has been the historic strength of our economy and consumerism. With the decades of bad foreign policy, global conflicts and non-deterred levels of debt, our country is facing the fastest economic decline of any power in recent history apart from those who lost the last century's world wars. Until there is revolutionary change in the USA regarding governance of our economy, I am not bullish on the American dollar in the long run. Sure, recent months have shown new highs in the stock exchanges and strengthening of the dollar against many other currencies, but unfortunately to me this has not been based on any significant long term changes or reasoning. Emotions and media manipulations are more in control than true economic indicators.
There is a reason the USA government, IRS and FED are all clamping down and passing laws limiting foreign investment and flight of capital. If people are truly free to "vote" with their capital, the USA economy and dollar would be in much worse shape than it already is. With Obama's new taxes and protectionist principles against foreign investment or repatriation of wealth...he has perpetuated at mega speed the American hypocrisy along with decades of previous politicians who have supported big government/big tax solutions to the never ending imbalance between the haves and have nots. The non government institution of the Federal Reserve continues its monopoly of power and influence over the money system. Someday, this house of cards will fall. In my opinion, the sooner the better. It will be painful whenever it happens, but even more so in the future when our philosophical "enemies" are stronger and can take more advantage of such a debacle.
Even small countries like Panama would be devastated by a real market correction of the US dollar. Since its currency called the "balboa" has been pegged to the dollar since 1904, a devaluation of the dollar would immediately almost halve the value of all real estate and other investments in the country against other global currencies. In essence, this would make much of the rest of the world "off limits" economically to Panamanians, even within the Latin American region. While some have claimed that Panama could and would immediately peg its currency to another one or float their own...I would have to question what the value of that would be? You would still have to START at the point value of the US dollar or equivalent value. Changing currency would not change the growing national debt of Panama. It would not change the adjusted value of any of the new real estate, hotels, airports or industry currently in development. It would only make it a GREAT deal for foreigners to come here for vacation or investment. Everything would be "half off" against other stronger currencies. I know my view is opposite what current developers and governments are suggesting for the future of Panama...but I would not count out my future projection.
How do we fight against this tyranny and currency manipulation? The elites of most nations love being at the controls of these things, so don't count on them to support any change of the status quo. The struggling masses are too busy surviving and poor to get an education or face these forces that are keeping them in place. The masses continue to support any leader or government who gives them free survival...albeit at the expense of their liberty. This leaves it to the middle class. Unfortunately this does not bode well for the USA with its shrinking middle class. I go along with USA Sociologists William Thompson and Joseph Hickey who estimate an income range of roughly $35,000 to $75,000 for the lower middle class and $100,000 or more for the upper middle class. If you go to China or other emerging countries...the middle class income would be about half of that amount but would buy a similar level of lifestyle in those countries.
Today's global revolution against tyranny is being driven by these middle class minorities who have sufficient education, access to technology and income to stand up against their elitist rulers and are more connected to the majorities who live in poverty. In progressive states, people have the chance to rise from poverty to the middle class. In socialist/communist states this likelihood was historically reduced. It is a sad day to me when there is more upside for economic growth in countries like China and India which have a quickly rising middle class...while the USA middle class is being squeezed out of existence. If this continues, believe me, revolution is coming to the USA just like it has in Egypt, the current Brazil uprisings, India, Indonesia and elsewhere. It is a sad day when American citizens are as manipulated and isolated as Chinese citizens have been for centuries.
The biggest fear these tyrannic nation-states have is a global currency. The "supposedly" legal reactions internationally to digital currencies like "BitCoin" is just one example of the panic and knee jerk reaction the Western nation states have when their controlled and empty fiat currencies are threatened. For now, these few control the coffers and currencies of the world, primarily only because the masses continue to accept these currencies as payment. I predict the day is coming sooner than later when the masses will rebel against empty currency controls. Technology will provide a way for "global patriots" to trade values outside of these false currencies being forced upon us. Even if we have to go back to "barter", we are better off economically than allowing ourselves to be controlled by falsely valued "fiat currencies". Storing up empty paper in debt ridden banks will not secure ones future prosperity. Why do you think so much "smart money" is currently being converted to commodities or "buildings" by those who can afford to do so?
Government valuations of markets and currencies will always be hyped and with no basis outside of "mandated" valuation by the few in power. The masses must someday realize this is totally dependent on THEIR cooperation in accepting it. In reaction, there have been more local or private "currencies" established in the last decade throughout the world. As the middle and working classes become more and more dissatisfied with the governance of their economies, we will see a move towards the "denationalization" of money and a move towards one global digital currency. This is one of the reasons I have moved my personal career in a direction associated with digital payment systems.
Future vision? Well, if I had my "druthers" and could rule the world, I would mandate a global governing body over currency and economic trade. All economic conflicts, embargoes and imperialist actions would have to be taken before this body. Obviously enough superpowers of the world would have to be behind it if only to support by force if necessary the agreements it mandates. There would have to be a very clear global constitution of rights and freedoms extended to ALL "gods children". Nation states could still exist somewhat for local governance issues, but when it comes to armed warfare and money values...these would all have to fall under control of the "global community". As long as certain despots have nuclear buttons to fall back on, there can be very little security of constitutional enforcement or hope for world peace. We can no longer count on nuclear "containment". This global body would have to take control and, better yet, methodically destroy and outlaw ALL nuclear weapons. (Of course this is another BIG subject to be taken up on another blog, but is part of what would be required to support global economic governance).
Money would all be "digital" and based on unified digit value throughout the world. If someone wanted to issue their own local currency for private reasons or "closed loop" trade...there should be no law against it, but on an international basis there would be one currency and one value for that currency. A glass of water might cost more in the desert than it does in the "Great Lakes", but the currency paying for it would be the same. Payment would not be with paper or plastic cards tied to dicey banks of a certain jurisdiction, but via digital mobile payments or "digital wallets" that could even be embedded in your watch or belt buckle. The new global banking system would guarantee these payments. This digital, global currency is the only way you can clean up the "dirty money" syndrome current governments love to hype. Every transaction would have a traceable source tied to the identities of the individuals or corporations making the payment. At the same time, ideally the global system would support the individuals rights to sovereignty and privacy of his/her personal information and holdings. This would simplify the whole banking and "dirty money" wars much of the world is now fighting a losing battle on. This to me is the only viable solution to taking tyranny and controls out of our global economic systems and restoring balance and fairness in our international monetary exchange.
How would all this be paid for? Very simply, all financial transactions would be charged a .05% (one half of one percent) transaction fee. This would be plenty of money to fund this global governance forever...and the nation-state hyped taxes and fees would disappear and be illegal within the global arena. This would leave a LOT more money in the hands of those who made it to continue the evolution of growing economies and solving the many problems of mankind. Currency should be one of the EASY fixes.
Of course, this will never happen while our current despot leaders are in place and accepted by we, the people.