The Obama Administration has been promoting the phrase of New Foundation as a summary of its governance approach in both domestic and international policies. Having just listened to his Cairo speech to the Muslim and Arab world I sensed that he was engaged in developing the principles or foundation for clear, principled, transparent policies in that part of the world.
I would like the Obama Administration to do the same for the domestic and international monetary systems that are the glue of financial and monetary systems.
The first step is to promote a national debate on this monetary part of the financial and economic crisis that America has inflicted on the world.
I suggest that at least three elements of that discussion are money creation, complementary currencies and a non-national international reserve currency.
It is encouraging that Ellen Brown’s idea of removing the money creation function away from privately owned banks to the public sector has received such strong response: among the 700 responses only about one hundred were negative. My comment is that we have to take this one step further and consider the whole US and international monetary system.
Complimentary currencies as proposed in the idea of natural money have a strong track record in monetary history. If FDR had allowed them to work in full bloom the Great Depression could be been shortened by many years.
As argued in my first submitted idea in this Open Government Dialogue about a carbon-based international reserve currency, a non-national international reserve currency is needed for international stability in monetary, financial, economic systems. This is a strong recommendation by the UN GA President's Commission on Monetary and Financial Crises which will be part of the UN Conference on Development and Finance on 24-24 June. I have been submitting to them the proposed Tierra international reserve currency in order to base that new reserve currency on the price of avoided carbon emissions. Adopting this carbon reduction would help all nations to deal with the financing of development and climate mitigation and adaptation measures. If the Obama Administration and China, the two greatest carbon producers, would work together by finding their common monetary ground, the international monetary system would be transformed.
Why is this idea important?