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"I will call the Global Reference Currency (GRC) the generic concept of a currency which is not tied to any particular nation state, and whose main purpose is to provide a stable and reliable reference currency for international contracts and trade. Furthermore, I will propose as unit of account for one particular type of GRC the Terra, which aims at firmly anchoring that currency to the material/physical world. Remember, one of the reasons that the global currency casino can churn as wildly as it does is the disconnection between the financial world and physical reality, a link which was severed by President Nixon in 1971. In this role, the Terra would be akin to the gold standard in the 19th century. The Terra is defined as a standard basket of commodities and services particularly important for international trade, and their relative weight in the standard basket would ideally reflect their relative importance in global trade. For instance, the value of the Terra could be defined as: 1 Terra = 1/10 barrel of oil (for example Brent quality and delivery) + 1 bushel of wheat (Chicago Mercantile Exchange delivery) + 2 pounds of copper (London Metal Exchange delivery) + ...etc. + 1/100 ounce of gold (New York delivery)" |
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A devastating analysis of the cultural, economic, political and social implications of the monetary system.
Irrevocable and global change is being driven by four key factors:
MONETARY INSTABILITY: the crashes of Mexico in 1994, South East Asia in 1997, Russia in 1998 and Brazil in early 1999 are signs of systematic dislocations of the official monetary system. No country should consider itself immune from such problems. How can we prepare for the possibility of a global monetary crisis?
THE AGE WAVE: two-thirds of all human beings who have ever reached the age of 65 are alive today. How will society provide the elderly with the money to match their longevity?
THE INFORMATION REVOLUTION: the reality is that the post-industrial global economy does not need - and therefore cannot and will not provide - jobs for the six billion people on the planet today. How can we provide a living for billions of people when technology makes jobless growth a clear possibility?
CLIMATE CHANGE AND SPECIES EXTINCTION: 1998 was declared by UN Insurance Initiative as the worst year ever for natural disasters. How can we resolve the conflict between short-term financial interests and long-term sustainability?
THE FUTURE OF MONEY examines and answers all of these questions, through Bernard Lietaer's unique vision of a society of 'sustainable abundance'.
BERNARD LIETAER has worked at the heart of the money system, in national and international banking and finance for the last 30 years, both within it, and as an academic. His experience ranges from his work as a senior executive in a major European bank, creating and managing one of the most successful Investment Funds, through to holding Professorships at Universities in Europe and the United States. His vast range of experience and knowledge of global money systems and how they work has made him one of the world's foremost financial visionaries. |
Lietaer, Bernard:
'The Future of Money. Creating New Wealth, Work and a Wiser World.' |