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May
02

The Tierra World Central Bank

Post By gaia1 in World central bank

The idea of World Central Bank has been around since the
middle of the 19th century when liberal economist John
Stuart Mill wrote about it and when the Paris International
Monetary Conference in 1967 hotly debated about it.
Among its proponents in the 20th century we find a
chairman of the US Fed, William McChesney Martin, the
influential journal The Economist and numerous other
supporters, mostly economists. Details can be found in
Benjamin Cohen’s The Future of Money’s last chapter
entitled Governing the New Geography.
The present economic meltdown has raised the need for a
global super-regulatory authority and both the G20 and the
UN GA President's Commission on Monetary and
Financial Crises are considering ways to deal with this
need. Jeffrey Garten, the Juan Trippe Professor of
international trade and finance at the Yale School of
Management deftly summarizes that need in his Newsweek
article of November 3 entitled “We Need a Bank of the
World.”

So, the need or even the clamor for a global central bank is
clearly articulated by its supporters with articulate
opposition by some and a silent majority in the middle for
whom monetary matters are too arcane to spend time on.
Advocating the need for a Tierra World Central Bank is
still a very uphill matter. It may become less so, if properly
understood and if enough political wisdom and will is
engendered among government, business and civil society.
The Tierra World Central Bank is a central bank that has
roughly the same functions as those banks advocated
earlier. It is different because it is based on the new
international reserve currency of the Tierra which would
not only replace present national currencies reserves of the
dollar, euro and yen, but also those proposed non-national
currencies that are based upon a basket of commodities,
currencies or the consumer price index. The Tierra World
Central Bank’s currency of the Tierra is based upon carbon
emission permits that are allocated on an equal basis to all
adults in both the global North and South. This carbonbased
reserve currency becomes part of a nation’s balance
of payments, resulting in a carbon account that has to be
balanced like a nation’s financial current account.

The consequence of having to balance this ecological
account is that an institutional mechanism is being created
where ecological debts in ecological debtor countries in the
global North are paid to the ecological creditor countries in
the global South. As funding for development and climate
mitigation and adjustment measures is going to be kingpin
for resolving the climate crisis in the December 09
Copenhagen meeting of the UNFCCC the acceptance of the
Tierra as an international reserve currency, its incorporation
into a nation’s balance of payments and its administration
by the Tierra World Central Bank is an option of crucial
importance. It would constitute a roadmap that would
resolve the economic crisis by resolving the climate crisis.

 

Mar
27

The UN Global Economic Coordination Council

Post By gaia1 in World central bank

First of all, the TIMU architecture's World Centrial Bank is not to be confused with a World Government. The WCB does require that nations cede monetary sovereignity, but that does not mean that they and their alliances are politically and economically completely subject to WCB's authority.

An important step on the road to WCB was taken last week Thursday when the UN GA Presient's Committee of Experts on Monetary and Financial Crises released its draft report where, among the recommendations, the following  proposal was made in 3. 25: A Global Economic Coordination Council 

"A globally representative forum to address areas of concern in the functioning of the

global economic system in a comprehensive way must be created. At a level

equivalent with the General Assembly and the Security Council, such a Global

Economic Council should meet annually at the Heads of State and Government level

to assess developments and provide leadership in economic, social and ecologic

issues. It would promote development, secure consistency and coherence in the policy

goals of the major international organisations and support consensus building among

governments on efficient and effective solutions for issues of global economic,

governance. Such a Council could also promote accountability of all international

economic organizations, identify gaps that need to be filled to ensure the efficient

operation of the global economic and financial system, and help set the agenda for

global economic and financial reforms. It would be supported intellectually by the

work of the International Panel discussed in III.10. Representation would be based

on the constituency system, and designed to ensure that all continents and all major

economies are represented."