June 1, 2009
TO: Dominique Strauss-Kahn, IMF Managing Director
TO: Barack Obama, President, United States
TO: Dmitry Medvedev, President, Russia
Subject: A $4M investment in year to realize the GHA Project: “Alternative Reserve Currency of Global Harmony: ‘HARMON’ (H)”. (The Project in 6 pages is append)
Dear Mr. Director!
The humanity for the first time in history faced a global currency challenge and necessity of designing of new reserve currency instead of traditional which has led once to world crisis and will inevitably lead new, even more destructive. The answer to this unprecedented challenge demands not only "repair" of traditional currency but also creation of the alternative one as a spare and saving variant about what it was spoken at the G20 summit in London and also before and after it.
On this summit total Dmitry Medvedev declared: «The discussion of a question about super national reserve currency will be continued … In Communique paragraph 12 the corresponding position is brought …. That assumes and means, that we will return to this question, discussing it both at level of the IMF and within the G20".
Addressing to France Parliament in March 2009, the IMF Managing Director Dominique Strauss-Kahn declared, that discussion about world reserve currency is fair and has the right to existence, however will occupy many months.
Within this intentions, the GHA, expressing one of opinions of a world civil society, has the honour to bring to your attention for discussion the project: “Alternative Reserve Currency of Global Harmony: ‘HARMON’ (H)”: http://peacefromharmony.org/?cat=en_c&key=367. This project of 69 co-authors from 23 countries in three languages: Russian, English and French expresses our vision of a new reserve currency from positions of the global harmony, which tendencies are especially notable in the beginning of the 21st century: European Union, China, nuclear disarmament, etc.
The GHA Project purpose consists in working out of alternative reserve currency on perspective within or US, or Russia, or IMF with financing of this project in the sum of $4M in year. The GHA possesses the necessary initial resources for the specified project, except financial.
Sincerely, with deep respect,
Dr. Leo Semashko,
Global Harmony Association (GHA)
March 27 - April 21, 2009
Alternative Reserve Currency of Global Harmony: “HARMON” (H)
Dr. Leo Semashko, project manager
with 66 GHA collaborators from 22 countries
From Russia: 29 coauthors:
Leo Semashko, Ph.D.,
Global Harmony Association President,
St.Petersburg State Councillor,
Director, International Website "Peace from Harmony",
Author of Tetrasociology as social science about harmony,
Director, Public Institute of Tetrasociology,
Social philosopher and sociologist,
Author more 200 scientific publications, including 12 books,
Pedagogical experience: 20 years,
Member of four International organizations.
Address: 7/4-42 Ho-Shi-Min Street, St. Petersburg, 194356, Russia
Tel: +7 (812) 513-38-63
Andrei Arsenchuk, Engineer, St-Petersburg
Sergei Busoff, Professor, St-Petersburg
Yuri Dorofeev, Economist, St-Petersburg
Natalie Hramikhina, Artist – Designer, St-Petersburg
Ivan Ivanov, Student, St-Petersburg
Dimitry Ivashintsov, Professor, St-Petersburg
Vladimir Kavtorin, Writer, St-Petersburg
Andrei Semashko, Entrepreneur, St-Petersburg
Igor Shadkhan, Professor, St-Petersburg
Alexei Shepel, Candidate, Historian, St-Petersburg
Natalie Sidorova, Journalist, St-Petersburg
Genrih Skvortsov, Professor, St-Petersburg
Grigory Toulchinsky, Professor, St-Petersburg
Tamara Trushnikova, Professor, St-Petersburg
Olga Ushakova, Psychologist, St-Petersburg
Svetlana Vetrova, Educator and Bard, St-Petersburg
Vadim Trifanov, Dr., Mathematician, St-Petersburg
Talgat Akbashev, Professor, Ufa
Valery Gergel, Professor, Moskow
Nina Goncharova, Artist, Novosibirsk
Igor Prihodkin, Educator, Cheliabinsk
Alexander Semashko, Economist, Kaluga
Peter Semashko, Lawyer, Kaluga
Andrei Smirnov, Professor, Novgorod
Nikolay Strelkov, Bisnessman, Ulianovsk
Tatiana Tselutina, Dr. Sociology, Belgorod
Basil Smirnov, Dr. Historian, Novgorod
Peter Sergienko, Mathematician, Serpukhov
From other countries: 38 coauthors:
Dr. Ghassan Abdallah, CARE Director, Palestine
Prof. Ammar Banni, Algeria
Mr Jean de Dieu Basabose, Educator, Director, Africa by Shalom Educating for Peace, Rwanda
Dr. Tholana Chakravarthy, India
Dr. Renato Corsetti, UAE President, Italy
Rosa Dalmiglio, Intercultural Peace Art Manager, Italy
Prof. John W. Forje, Cameroon
Dr. Mona Gamal-El Dina, France
Dr. Guy Crequie, Poet and Philosopher, France
Prof.Ananta Giri, India
Takis Ioannides, Poet and Writer, Greece
Tatomir Ion-Marius, Poet and Writer, Romania
Muhammad Iqbal, Poet and Writer, Pakistan
Prof. Ernesto Kahan, Israel
Dr. Dimitris P. Kraniotis, President of World Poets Society, Greece
Dr. Rose Lord, Poet and Writer, USA
Prof. Charles Mercieca, IAEWP President, USA
Dr. Nina Meyerhof, President, Children of the Earth, USA
Kae Morii, Poet and Writer, Japan
Prof. Matjaž Mulej, Slovenia
Susana Roberts, Poet and Writer, Argentina
Dr. Maitreyee Roy, India
Dr. Bernard Scott, England
Prof. Rudolf Siebert, USA
David Stringer, Poet and Writer, UA President, England
Robert M.Weir, Writer,USA
Prof. Jiang Yimin, China
Prof. Alexey Stakhov, Canada
Prof. Oleg Bodnar, Ukraine
Prof. Edward Soroko, Belorussia
Manager, Rama Narayana, India
Poet, Taki Yuriko, Japan
Prof. Patricia Rife, Ph.D., USA
Dr. Lana Yang, MBA, USA
Dr. Laj Utreja, USA
Dr. Leonid Beluy, Academician, Ukraine
GDR. Prof. Sir Varant Seropian, Lebanon
Heli Habyarimana, Post-graduate, Rwanda
Was approved by the coauthors, the Board, Honorary Advisory Committee and General Directorate of the Global Harmony Association, April 21, 2009
In Russian: http://peacefromharmony.org/?cat=ru_c&key=391
In English: http://peacefromharmony.org/?cat=en_c&key=367
In French: http://www.peacefromharmony.org/?cat=fr_c&key=124
Copyright © 2009 Global Harmony Association
Copyright © 2009 Leo Semashko
- The main conclusion from the G20 Communique, London, April 2, 2009
- Scientific base for alternative reserve currency of global harmony «HARMON»
- «HARMON»: the basic qualities
- Ways for realization of reserve currency of global harmony
There is nothing more practical than a good theory
1. The main conclusion from the G20 Communique, London, April 2, 2009
The Communique analysis leads to a following main dual conclusion. on one hand, the hope is expressed in viability of the traditional reserve currency and financial system under condition of its "repair", and on the other hand, it intuitively reflects the tendency of the global harmonization demanding alternative, balanced and reliable currency. This currency should exclude possibility of the new financial crises and solve global problems of humankind. It should provide what the traditional reserve currency is not able to provide, which is no guarantee for no repetition of crises and for solution of global problems. Therefore, the G20 has kept possibility of search of alternative currency that some leaders after end of their summit have expressed. (The Communique detailed analysis and conclusions from the analysis see on the site.
In line with this tendency the Global Harmony Association (GHA), as the representative of a world civil society, offers to public opinion and also for the G20 leaders and for the International Monetary Fund (IMF) the project of alternative reserve currency of harmony (Global Harmony Reserve: GHR) or «HARMON», briefly: «Í».
2. Scientific base for alternative reserve currency of global harmony «HARMON»
On the basis of Tetrasociology as the science about social harmony and its actors: four sphere classes of the population a scientific theory of global reserve currency of harmony of humanity: “Harmon” arises.
The first conclusion of this theory is the following. None of the national/block/regional currencies, by definition, is able to carry out the function of a really global currency supportive of harmony of world economy as each currency is limited by the narrow national/regional interests and is not able to overcome them. National interests and national currencies serving them are a source of the most national and global problems: wars, terrorism, violence, poverty, hunger, ecology and etc. Therefore they do not match the global interests of world peace, justice, cooperation and prosperity.
The second scientific conclusion is: a really global reserve currency cannot be tied to one national or regional currency. It should be provided globally in two defining dimensions: the source and the purpose.
·The source: It is built on economic richness, neither of a single one nor of several countries but on richness of the entire world, i.e. all countries and the entire world population.
·The purpose: It is neither created for enrichment of one or several nations at the expense of impoverishment of others nor for an infinite military growth, but only for the global social harmony. The world can accept only such reserve currency, which will serve the common interests of global harmony of the world’s population and meet the true national and international interests, shared by a big majority of world population.
The third scientific conclusion is: all currency reserves and all their commodity and gold backing are created by the world's population, therefore all currencies, including reserve, should belong, as well as the power, to the entire world population. People are the source not only of power but also of a currency, therefore not only the power but also the currency belongs to the people. This is a truly democratic vision concerning currency, instead of the traditionally imperial or elitist ones. Any currency is provided by the population, which is the sovereign proprietor of this currency. Other sovereign proprietor of this currency does not exist. The sovereign currency property is diversified by the international and national right of the private currency property. The governments and banks can be only private currency proprietors and managers of currency on behalf of the population.
The fourth scientific conclusion is: social harmony of each country and humankind as a whole is provided with harmony of the sphere classes of the population. This harmony demands corresponding harmony (equality, balance, concordance, proportionality, etc.) of currency richness of each of these classes. Currency harmony defines harmony of the global exchange and production. only such currency is able to exclude any financial crises for ever. The sphere classes create their democratic tools for harmonious distribution of currency richness between and inside themselves. Such tools should become the harmonious banks, not less than 50% of which should be state-controlled to minimize the bank speculations and to maximize their harmonization. It is obvious, that the proportion 50:50 in the ratio between private and state ownership is the most harmonious though, of course, from it the most different exceptions for the different countries and for their different stages are possible.
Now we will be limited by these four scientific bases of alternative reserve currency, which demand the further specification, additions and development.
3. «HARMON»: the basic qualities
1. Harmon is the global reserve currency of a harmonious civilization, harmonism and transition to it. Dollar is the reserve currency of industrialism in the form of capitalism as an industrial civilization dominant. Two civilizations assume two differences concerning quality and social importance of currencies. At the modern level of globalisation necessity begins that a new, global currency is realized at a long stage of its creation, not less than 20 years. This currency should serve to humankind’s prime purpose: social harmony as a sole way of survival, sustainable development, global peace, prosperity of all people, and the common good. Harmon can be introduced after 2030 during 10 years, with which will begin conscious transition of humankind to a harmonious civilization.
2. Harmon as the world reserve currency is created and functions on the basis of international law as «International Charter of Harmon», accepted in accordance with established procedure. In this project we formulate the basic qualities of Harmon, which the GHA offers in its Charter.
3. Harmon is created on the historically tested universal equivalent of an exchange: gold. Harmon is backed with cumulative gold reserves of the world population and the states. This reserve grows only at the expense of extraction and finds of gold. The world gold reserve and its limited growth limits growth of Harmon, minimize its inflation or deflation, and provide its highest reliability and stability as global equivalent of a harmonious exchange.
4. The Harmon’s total sum expresses the total cost of cumulative richness of humankind as the sum of national richness of all countries of the world or as the sum of richness of four social classes of humankind, called sphere classes in Tetrasociology (see reference 3): socioclass, infoclass, orgclass and technoclass. The Harmon’s sum is the upper limit for the sum of national currencies in total.
5. Harmon, harmonious money is the tool for general harmonious enrichment unlike dollar and other national currencies as way for private disharmonious enrichment. It is included in exchange chain of equal equivalents: goods (services) – gold – Harmon – national money, acting as the tool of harmonization of extreme elements of this chain and harmonization of their distribution between different social groups. It is provided with double structure of Harmon: social and monetary, which is subordinated to the social one and expresses it.
6. Harmon is designed on the basis of richness and numbers of the sphere classes of the population. These classes are the key actors of social harmony of humankind. The social structure of Harmon and its organic orientation on harmony of sphere classes is a basic difference of a new reserve currency from the traditional one.
7. Harmon exists as e-money (e-cash) that excludes its paper emission.
7.1. Currency accounts in Harmons. Each person since his/her birth receives in Harmons his/her bank electronic account, on which all incomes and grants in reserve currency are entered. They can be transferred into the national accounts/currencies and back. This account is called "Harmon-account" or «H-account". Parents dispose of the H-account of children to their majority. Nobody can liquidate the H-account, even its owner. The H-account can be blocked for some time under the solution of special currency court. After death the H-account cost passes to successors under the law.
7.2. The H-account social structure expresses its dependence from richness of four sphere classes and from degree of their (and each person) incomes in corresponding spheres of social production. The social structure of harmon is expressed by social structure of the H-account. This structure includes monthly/annual incomes from employment of the account owner in one or several production spheres from four: social, information, organizational and technical. Classification of H-accounts on the sphere classes of a world's population will provide harmonization of richness of these classes.
7.3. The H-account monetary structure includes three parts: 1. A constant one equal to some sum of the Harmons, which is not spent, except in extreme cases of global accidents and threats, it serves as the stabilization fund and as the guarantor of currency reliability;
2. A purposeful one, providing a living wage and target use of currency;
3. A free one, including all means above living level.
The living wage includes five kinds of purposeful currency:
1. For the food, excluding hunger;
2. For the habitation, excluding homelessness;
3. For the harmonious education, excluding illiteracy and providing vocational and harmonious training;
4. For the health, providing minimum level of health services;
5. For the ecology, providing sufficient level of humans’ natural environment quality.
These kinds provide the fundamental human rights and the resolution of corresponding global problems.
7.4. The constant and purposeful parts of the H-account are formed at the expense of means of the account owner, his/her parents, friends, and relatives, the related enterprises and other organizations, national and international funds, and also at the expense of funds of the sphere classes. The account’s free part is formed only of incomes of its owner.
7.5. All H-accounts (i.e. accounts of everyone sphere class) are classified on 10 standards of well-being: the first level is the poverty including all people with incomes providing for a minimum living wage; following three levels cover middle class; following three levels cover a rich class; and following three levels cover the richest class. This classification will provide harmonization of richness of these levels of population.
7.6. Totality of the H-accounts of the world's population makes each person on the Earth a member of one family. Through universal system of these accounts the entire world's population becomes the proprietor and the guarantor of the Harmon. Modern IT allows humankind to create a WorldNet of H-accounts of harmony for humankind, similar the Internet, but with the strict rules of functioning. By 2040 the entire population of the Earth could have the H-accounts.
7.7. H-accounts are transparent and all operations with Harmon are open for the democratic control at all levels.
8. only general harmonious education since the childhood is called and able to convince and teach the population to live in harmony and by the principle of maximization of harmony instead of profit maximization. General harmonious education is based on Academies of Harmony/Peace as presented in the GHA related project.
9. Harmon can not be spent for military expenses, weapon, terror, drugs and etc., that is regulated by the International Charter of Harmon and is provided with the International Monetary Fund of Harmony and other international organizations supervising the individual and official use of Harmon.
All named qualities of the global currency Harmon essentially differ from dollar as the traditional reserve currency and overcomes all its historical lacks.
4. Ways for realization of reserve currency of global harmony
As it was underlined above, the embodiment of the project of alternative reserve currency Harmon will demand up to 20 and more years. For carrying out of the necessary sociological and other scientific researches on the basis of Tetrasociology, for experimental approbation of a new currency in regions and for many others research and organizational works, the GHA suggests to create «International Center of Reserve Currency of Harmony» (ICRCH) as the IMF department. We suggest to limit the ICRCH term to 20 years (to 2030), and its staff by 30 employees (20 of GHA and 10 of IMF). Its annual budget we plan to be ?4 million, including the salary of employees ?2.5 million (?7 thousand per month on the average for each employee) and ?1.5 million for carrying out of annual conferences and for other expenses. The total sum of expenses of the ICRCH work for 20 years will make ?80 millions. It is a paltry payment for creation of the new reserve currency, scientifically proved and favorable for all nations with colossal positive consequences for the future development of humankind.
The ICRCH will allow humankind not to wait, with destiny of a lamb to be sacrificed, while a new, more catastrophic financial crisis will burst at the end 2010 and the beginnings 2011, but to begin working out of the alternative reserve currency already now. Such foresight of the world community would be natural reaction to the poor trust toward dollar and completely not superfluous. Otherwise, in case of a new financial catastrophe of dollar (it is inevitable, when the destiny of humankind is given in the hands of the present lobbies and press power), world economy and population, as a baby, again will be unprepared for it.
In 2-3 years of the ICRCH successful work on the basis of its creation by the World Harmony/Peace Academy aimed at intensive working out of the scientific theory of harmonious currency and tools of its maintenance, and also at preparation of related experts for/in all countries of the world will be possible. The GHA assures that the ICRCH in 20 years of its work together with Harmony Academies will convince both the population and the governments and business concerning the necessity of currency of harmony for all of them.
Most of all the alternative currency is necessary for the first USA blessing to be rescued from accruing destructive dependence of constantly depreciating dollar, which can lead economy of the USA to catastrophe and the country to collapse (see specified "Analysis" in more details). In this connection, the GHA assumes that in 2010-2011 the USA government will realize a malignancy of dollar as reserve currency for economy of the USA and the world. In this connection, it is natural to expect, that the USA will refuse giving up US dollar as the international reserve currency and agree on introduction of the new alternative currency in the transitive (20 years) period: SDR, uniting four currencies: dollar, euro, pound and yen. SDR is the IMF cashless calculation currency with 1969. This currency is offered by China, Russia and others as the alternative reserve currency. The USA also will agree with the beginning of working out of global currency of harmony, which will be used not earlier than in 20 years. It will be the greatest epoch-making change of the USA to save the country and the world. Does President Obama dream of such change?
The GHA is intended to direct the project of «Alternative Reserve Currency of Global Harmony: «HARMON» to the IMF and to the G20 leaders.
The GHA assumes that its currency project is not without errors, which accompany creation of any new tool, especially such unprecedented difficult one as alternative reserve currency is. In time, these errors will be detected and eliminated. Therefore they will not paralyze our aspiration to the harmonious currency and harmonious future beyond war, terror, hunger and other pathologies of industrialism.
The project was edited by Dr. Matjaž Mulej, Prof. Emeritus, University of Maribor, Faculty of Economics and Business; Slovenia, April 19, 2009.
 Communique publication: http://www.g20.org/Documents/final-communique.pdf
This Communique is called now: “Leaders Statement. The Global Plan for Recovery and Reform - London, 2 April 2009.” However, in the text of our project we keep the former title: Communique.
Global Harmony Association (GHA)
Since 2005, GHA is an international NGO uniting more 300 members in 48 countries and more than one million participants from the GHA collective members in 80 countries. GHA Founder and President: Dr. Leo Semashko
Address: 7/4-42 Ho-Shi-Min Street, St. Petersburg, 194356, Russia
Telephone: +7 (812) 513-38-63, Facsimile: +78125133863
March 30, 2009
TO: Mr. Brown, Prime Minister, Great Britain; Mr. Medvedev, President, Russia; Mr. Obama, President, USA and to other participants of the G20 summit, London, April 2, 2009, devoted to the question of a new reserve currency.
SUBJECT: The GHA pilot project by 69 its members from 23 countries: «International Reserve Currency of Global Harmony: «HARMON» (H)» (6 pages) as the International NGO opinion concerning new reserve currency:
For the first time in history humankind faced a global currency challenge and necessity of designing of new reserve currency instead of traditional, which has led to the world financial and economic crisis. For search of the response for this unprecedented challenge your highly authoritative summit gathers. For discussion on the summit each government from 20 has prepared corresponding proposals and projects from positions of national interests.
The GHA as the world NGO has prepared the project from positions of interests of the humankind population and it’s the equally necessary sphere classes as actors of global social harmony. All people on the Earth use currency, therefore their generalized civil opinion can and should be presented at the summit.
The GHA project purpose consists to bring up a question for discussion and pay attention of the G20 to creation possibility in the future (in 5-20 years) of new reserve currency of harmony: «Harmon» (H), and also on necessity of financing of the corresponding scientific researches and design works. GHA possesses necessary initial resources: personnel, information, international and administrative, except financial, for the specified researches and design works.
GHA considers useful distribution at the G20 summit this letter and the project as the news release and its publication as one of opinions of a civil society.
With deep respect,
Dr. Leo Semashko
Global Harmony Association (GHA)
April 1-9, 2009
The G20 Communiqué Analysis and conclusions from the analysis
Dr. Leo Semashko
In Russian: http://peacefromharmony.org/?cat=ru_c&key=391
In English: http://peacefromharmony.org/?cat=en_c&key=367
Copyright © 2008 Leo Semashko
- Different levels of understanding of financial crisis: opinion/doxa and theory/science
- The short analysis of the Communique of the G20 summit in London, April 2, 2009
- Communique ambivalent character
- American dollar as the reason of financial crisis and search of alternative currency
- Militaristic quality of dollar as reserve currency
- Offers of alternative reserve currency: their advantages, lacks and transitive character
- Necessity for the world and for the USA alternative currency of harmony
There is nothing more practical than the good theory
1. Different levels of understanding of financial crisis: opinion/doxa and theory/science
To make to itself representation about level and depth of understanding of financial crisis I analyzed some national information platforms (online forums), devoted to discussion of this question:
1. In Russia: Newsland Portal: http://www.newsland.ru/,
2. In England: The London Summit 2009 Portal: http://www.londonsummit.gov.uk/en/
3. In England: Timesonline Portal: http://www.timesonline.co.uk/
4. In China: China Daily: http://www.chinadaily.com.cn/world/2009-04/02/content_7644484.htm, etc.
As a result we have found, that the problem of financial crisis is discussed by hundreds and thousands people (if to consider other countries still) in the world. These people, in the majority, are not «financial or economic experts». But they are united by a civil responsibility and anxiety for the decision of this problem. At the same time it is known, that to the dilettanti belongs not less discoveries than to professionals, many of which suffer by «professional cretinism».
We have compared the different judgments about crisis: the G20 leaders, Ministers of Finance, scientists and ordinary citizens. All these judgments are individual, very different and are deprived the scientific theory. All these judgments are "opinion", or, as they named by the antique philosophers (Plato, Aristotle and others) – «doxa». They distinguished knowledge «on true»: the theory/science and knowledge «on opinion»: doxa, i.e. unstable and problem knowledge. In the subsequent, Immanuel Kant distinguished them as the truth steps. We have not found any reference, even at scientists, on any theory/science, from which positions financial crisis is analyzed and different decisions are offered. The science about currency has not developed still, therefore the currency problem solves on a basis not science but the opinions expressing different national interests, which neglect a science. The science about reserve currency does not exist because really global currency does not exist yet and that, which exists, is national. If the similar science existed, it could predict financial crisis but it does not happen.
It is necessary to underline that in discussions and in the Communique there are no references to economic liberalism. Obviously, that financial crisis has discredited and has buried this "theory" definitively, therefore the Communique is given not to liberal ideas of "the free market» but to measures of state regulation and the international financial control. The Communique became a sunset for world liberalism.
The Global Harmony Association (GHA) pilot project by 68 its members from 22 countries: «International Reserve Currency of Global Harmony: «HARMON» (http://peacefromharmony.org/?cat=en_c&key=367) positively differs from the Communique by a theoretical basis of scientific knowledge of social harmony what not developed this knowledge was not today. The project differs from individual opinions by collectivity of its 68 co-authors, irrespective of quality of this collectivity: the main thing here that this beginning will find development in the future. 69 co-authors are united by one the common, divided by everything, scientific idea: «peace and prosperity go from harmony». This idea possesses the most powerful potential of a global unity and humankind prosperity on the step of its harmonious civilization or harmonism.
Strangely enough, from an abundance of the opinions arise the Communiqué 29 points approved by 20 world leaders on April 2, 2009. The frightening scale of global crisis and its consequences, instead of a theoretical generality of a vision, which is absent, can be the reason of this consensus only. The G20 opinion as the opinion of ruling world elite, as always, becomes dominating opinion, which rules the world.
2.The short analysis of the G20 Communique of the summit in London, April 2, 2009
Communique publication: http://www.g20.org/Documents/final-communique.pdf
This Communique is called now: “Leaders Statement. The Global Plan for Recovery and Reform - London, 2 April 2009.” However, in the text of our project we keep the former title:Communique.
The Communique harmonious = positive intensions are:
1.«(2) A global crisis requires a global solution», i.e., obviously, in global interests. It is remarkable, that national leaders aspire to express world interest.
2.«(3) Our global plan for recovery must have at its heart the needs and jobs of hard-working families, not just in developed countries but in emerging markets and the poorest countries of the world too; and must reflect the interests, not just of today’s population, but of future generations too ». However, HOW interests «the poorest countries and the future generations» will be considered, it is not spoken.
3.The financial sector should «(13) support sustainable global growth and serve the needs of business and citizens ». However, HOW it will be provided, it does not speak.
4.«(14) We agree to establish the much greater consistency and systematic cooperation between countries, and the framework of internationally agreed high standards, that a global financial system requires.» However, WHAT these « internationally agreed high standards», WHO, WHEN and on WHAT criteria they will be created it is not defined.
5.«(15) The era of banking secrecy is over.» It is difficult to believe, but the fact, that the G20 encroached on Holy of Holies: on a commercial secret of banks and bankers, which is protected strongly by national laws in all countries. However, all is simple: the USA decided to sacrifice (still it is not known in what degree) "commercial secret" to keep the global currency monopoly.
6.«(15) Establish a new Financial Stability Board (FSB) with a strengthened mandate, as a successor to the Financial Stability Forum (FSF), including all the G20 countries, FSF members, Spain, and the European Commission ». The establishment of new global financial body with large powers needs be welcomed; however, the estimation of its efficiency can be given after 2-3 years.
7.«(15) Endorse and implement the FSF’s tough new principles on pay and compensation and to support sustainable compensation schemes and the corporate social responsibility of all firms». It is a remarkable measure, but its efficiency can be estimated in some years.
8.«(21). In addition to reforming our international financial institutions for the new challenges of globalisation we agreed on the desirability of a new global consensus on the key values and principles that will promote sustainable economic activity.» It would be an excellent consensus if in it the global economic and social harmony would take a place of the key value and solving principle. But already the aspiration to a consensus is indicative.
9.«(22) Falling demand is exacerbated by growing protectionist pressures and a withdrawal of trade credit. We will not repeat the historic mistakes of protectionism of previous eras.» Protectionism overcoming faces «national interests» and here it is not known, which from them will win in the near future. But as a whole it is the positive tendency in a direction to global harmony. However the G20, ascertaining protectionism growth and simultaneously calling to release from it, bares the contradiction between a word and deed: the protectionism of national interests grows, though in words it refuses. the G20 ignores that fact, that the protectionism is, as a matter of fact, a way of protection of the countries from dictatorship of the unlimited expansion of the American dollar and its printing press.
10.«(25) We are making available resources for social protection for the poorest countries». Resources for social protection in the poorest countries is too the harmonization tool if it works.
11.«(26) We recognise the human dimension to the crisis. We commit to support those affected by the crisis by creating employment opportunities and through income support measures». The attention to human measurement testifies to leaving from extreme economism and liberalism.
12.«(27) We will make the transition towards clean, innovative, resource efficient, low carbon technologies and infrastructure. We will identify and work together on further measures to build sustainable economies.» This good idea should have logic continuation: «within global harmonious economy».
All these positive tendencies are simultaneously aspiration to global social harmony within disharmonious industrial society. When these tendencies can overcome industrial counteraction and be realized will show time.
The Communique disharmonious = destructive intensions are:
Unfortunately, the Communique appeared the superficial solution, which not touched upon the reason of financial crisis. Its positive aspirations can appear only beautiful rhetoric, similar to the wide hat covering the ugly reason, but no more, than a fig leaf. It forces to doubt in sincerity and viability of the accepted solutions. Their basic lacks, menacing to cross out the Communique positive potential, consist in the following:
- All measures are reduced to additional dollar injections in the IMF: 1 trillion in 2009 and 5 trillions in 2010, to which end the G20 expects restoration of the world economic growth to 2 % and prevention of the crisis repetition in the future (5,6). So, the end of 2010 will be the moment of true for the G20 solution. The American dollar, which became the reason of modern crisis, is used as means for its overcoming. A fire is extinguished by gasoline. 6 trillions dollars, which, according to the G20, should rescue the world finance and economy for 2 years, most likely, will provoke a new, even more severe crisis. Figures: 6 trillions dollars and 2 years appeared not casually. It is known, that now the USA annually print 3 trillions dollars a year, in 2 years they will print just 6 trillions, half from which will leave to itself. The dollars press (overissue) became a modern magic lifesaver for overcoming of world crisis. It would be very ridiculous, if it was not so sad: the USA remain a source and empire of world financial and economic disharmony. The USA new world role is a role of «world destructor». It became the main obstacle for global harmony. The USA created the «press paradox», which they simultaneously transformed into a source of crisis and in means of its overcoming. This is the most fundamental and simultaneously the weakest spot of the G20 Communique, which, thereby, undersigns in own short-sightedness, theoretical powerlessness and in ignorance of the OTHER – real and new - way of overcoming of the crisis and prevention new. This way is creation within 15-20 years of the alternative reserve currency of global harmony, about what to look below. The G20 Communique positive intensions can be realized not through dollar but only through harmony currency. At preservation of dollar they are reduced to rhetoric and smoke screen level.
- Domination of national interests and the protectionism, hidden under rhetoric of globalisation, cooperation, with the regard for other countries and world interests: «8. Our actions to restore growth cannot be effective until we restore domestic lending … We have provided significant and comprehensive support to our (national–L.S.) banking systems». «(14) We each agree to ensure our domestic regulatory systems are strong.» Global interests are reduced to the sum of national and subordinated to it. However, global interests qualitatively differ from national, have other nature and value: they are whole to which parts (national interests) should be subordinated, coordinated with the whole. I.e. not the whole should be subordinated to its any part but parts should be subordinated and coordinated with the whole. only in this case whole (the world financial system) will be viable. In a return case it will be itself destructive. This strategic variant of a world financial system is kept in the Communique.
- «(13) Major failures in the financial sector and in financial regulation and supervision were fundamental causes of the crisis.» However, it is reality distortion. All know and President Obama it recognized, that the fundamental reason of crisis is huge surplus of unprovided dollars. The recognition and the scientific analysis of this reason are substituted by "repair" of secondary and superficial factors: crediting, financial regulation and control. Unique attempt in the Communique scientifically to define the crisis reasons is actually ignored by a sacral phrase: «Confidence will not be restored until we rebuild trust in our financial system.»
- The G20 Communique is deprived any scientific-theoretical basis shared by all participants. Its basis is "opinion" or «doxa» of the leaders and Ministers of Finance of 20 countries by a principle: «the opinion of the world dominating elite is dominating opinion in the world». The rhetoric of beautiful and pleasant words in the Communique cannot replace the strict scientific approach.
5.«(20) In order for our financial institutions to help manage the crisis and prevent future crises we must strengthen their longer term relevance, effectiveness and legitimacy.» If these institutes can not prevent modern crisis, whether they will be capable to prevent the future crises?
These and similar lacks of the Communique reflect traditional industrial aspirations of the G20 and absence of the general scientific approach to the analysis of the reasons and for working solutions.
3.Communique ambivalent character
The Communique positive and negative intensions express a contradictory of modern epoch of transition of humankind from an industrial civilization to harmonious one. The global Harmony Association (GHA) defined a modern epoch since 1990, from the USSR collapse, as transitive from industrial to a harmonious civilization: http://peacefromharmony.org/?cat=en_c&key=336. This transition makes epoch-making change of the 21st century. Its main contents are globalisation of harmony or growth and strengthening of global harmony and harmonious globalisation. A key turning point in this transitive process is, of course, transition from currency of industrial disharmony to currency of global harmony. The industrial civilization creates all new global challenges for humankind. It added to the traditional global challenges: to war, ecological, demographic, poverty, hunger, etc., which it is incapable to answer adequately, a new unprecedented challenge – currency one, before which it also is powerless.
All these challenges are system, holistic and they can be resolved only within the new, harmonious civilization, which grows within the old one slowly but persistently and irrepressibly. The first swallow of a traditional currency sunset is modern financial crisis, which is the irrevocable beginning of the industrial civilization end, including its financial institutions. However, they still give up hope of their "repair", "restoration", "recovery" andetc. that is reflected in the Communique. Some more powerful global financial crises are necessary, that they dispelled the illusions of these hopes. And these crises will not keep waiting itself long.
So, in the Communique the hope on viability of traditional currency and financial system under condition of its "repair" is expressed, on the one hand, and with another, the tendency of global harmonization, which is knocked inexorably in consciousness of everything including ruling elite found intuitive reflexion in it. These, positive aspects of the Communique, to which we paid priority attention, are the most valuable for modern civilizational transition.
4.American dollar as the reason of financial crisis and search of alternative currency
The majority of the governments and many experts agree in opinion, that the reason of financial crisis is surplus and neediness of the American dollar as reserve currency. “China's central bank governor Zhou Xiaochuan wrote in an article that it was necessary to create a "super-sovereign reserve currency" to overhaul the existing international monetary system of using the currency of one nation as the global reserve currency.” “Even before Zhou's remarks, an UN panel of financial experts had suggested that the world ditch the dollar in favour of a shared basket of currencies, Reuters reported. That was followed by Russia saying it would pitch for a new reserve currency at the G20 summit to be held in London on April 2”. "Despite all the talk of 'confidence', investors are still deeply concerned about their holdings of the US dollar and Treasuries, not only in China, but around the world," said Erh-Cheng Hwa, chief economist of the Bank of Communications and a former IMF economist. "Zhou's proposal, along with others', could add more pressure on the US government to take real responsibility to clear up the mess it has created.": http://www.chinadaily.com.cn/china/2009-03/26/content_7617126.htm.
Addressing to France parliament on March 25, Dominique Strauss-Kahn, IMF Managing Director has declared, that discussion about world reserve currency is fair and has the right to existence, however will occupy many months. From its easy giving the prospect of creation of new currency from the long-term was transformed to the nearest: http://top.rbc.ru/finances/27/03/2009/290289.shtml.
The mayor of Moscow Jury Luzhkov told on April 2 on presentation of its new book "Transcapitalism and Russia", devoted to the reasons of world crisis and ways of an exit from it, the following: «Today, according to experts, only the tenth part of the USA Gross Domestic Product is given by real production. The rest is a result of game. Games on the stocks, games with dollars, which have printed on one quadrillion two hundred trillions: in 10 times more than the USA GDP» (http://beta.tvc.ru/ShowNews.aspx? top=5&id=fd7877e9-fc02-4fd6-9f36-87f2674f0ffb).
Many independent observers underline incurable painful dependence the world economics from the American currency. The criticism of the American capitalism and egoism is presented in the open letter to President Obama of the professor Sidney J. Gluck: http://thepodunkblog.blogspot.com/2009/03/open-letter-to-president-barack-obama.html. Professor Gluck underlines, that «WE ARE LIVING IN A CENTURY OF EPOCHAL CHANGE», which, from the GHA point of view, transition from capitalism to harmonism, from dollar reserve currency to harmony currency is.
French writer Guy CREQUIE writes: «Then, so more and more of decisions supra national are caught, the policy remains still controlled mainly at the level of the United States nation … Currently still, in spite of the revival program of the President OBAMA, the US economy lives above its means» (http://guycrequie.blogspot.com).
5.Militaristic quality of dollar as reserve currency
The known American financial economist Prof. Michael Hudson published on March 29 the article: «Economic Meltdown: The "Dollar Glut" is What Finances America's Global Military Build-up». In it he underlines, that the U.S. payments deficit stems from military spending. «For the first time since the 1950s this looks like a real possibility, thanks to worldwide awareness of how the U.S. economy is glutting the global economy with surplus "paper" dollars and U.S. intransigence at stopping its free ride. From the U.S. vantage point, this is nothing less than an attempt to curtail its international military program», writes Hudson (http://www.globalresearch.ca/index.php?context=va&aid=12944).
So, the USA assigned the military expenses for the whole world. The dollar is used for the USA wars, which have made the world by the financial hostage of the military programs. Militaristic quality of dollar as reserve currency consists in it. Such dollar is the main obstacle on a way to global harmony and the global peace. Instead of dollar the peace and harmonious alternative currency is necessary.
6.Offers of alternative reserve currency: their advantages, lacks and transitive character
We will consider some variants of alternative reserve currency. We will underline that all of them recognize duration of transition to new currency from 20 to 25 and more years.
China's central bank governor Zhou Xiaochuan suggested that the International Monetary Fund's (IMF) Special Drawing Rights (SDRs), a currency basket comprising the dollar, the euro, the pound and the yen, had the potential to serve as a super-sovereign reserve currency. The SDRs have been used as a unit of account among IMF members and other international organizations since introduction in 1969: http://www.chinadaily.com.cn/china/2009-03/26/content_7617126.htm. This variant is excellent as transitive one: it limits a destructive role of dollar. But it does not overcome it and acts as the block and disharmonious currency, which is not answer to world interests and interests of each nation.
In March 2006 the Asian Bank of Development made solution to enter "Asian Currency Unit" (ACU) which united the monetary units of 13 countries of Asian-Pacific region, including Japan, China, South Korea and Taiwan. The weight of each currency in ACU will be defined by the size of GDP, a turn of foreign trade and other social and economic indexes. There are some more examples of creation of the regional currencies. For example, the African States Commonwealth and the Muslim Countries Union tried to create the incorporated monetary units. The Muslim Countries Union succeeded in it and for a long time uses uniform monetary unit "Dinar" in the internal interstate calculations: http://top.rbc.ru/finances/27/03/2009/290289.shtml
Dr. Igor Panarin, the Russian Ministry of Foreign Affairs Diplomatic Academy Professor, considers, that the economic crisis will lead the USA to collapse in 2010 and then the creation of a new world reserve currency ACURE will be a necessity. «It will be based on balance of three currencies: ACU (Asian currency unit based on Yuan), Ruble and Euro. The Ruble is Russia; the Euro is Germany and EU. ACURE will be created on the basis of three currencies, but key of them, certainly, will be Chinese Yuan» (http://newsland.ru/News/Detail/id/353512/cat/86 / # comments481641). Prof. Panarin speaks: «the Ruble and Yuan can become ‘the centers of gravity’ for other states and a basis for new world super currency ACURE (the Yuan becomes a basis for creation of Asian currency ACU, which together with Ruble and the Euro will create ACURE)»: http://newsland.ru/News/Detail/id/353745/cat/42 / # comments482070.
Unfortunately, Prof. Panarin thinks by the old Marxist categories of class struggle and the new world repartition. His theory "Blocks Struggle» is similar to so odious and unscientific theory Prof. Huntington’s "Clash of Civilizations». Its idea of the world repartition and creation of the Eurasian Union (EU-2) is the very dangerous militaristic project threatening by the 3rd World War. What for Russia and Asia such EU-2, which will end in the world nuclear winter? Prof. Panarin is limited by the narrow frameworks of imperial great-power mentality and anything the best to think up he is not capable. He ignores realities of last years, when both China and Kazakhstan defined the aspirations to a harmonious society and never will agree to enter into the militaristic block directed against other countries.
David Stringer, International coordinator, the Universal Alliance from England, offers for a long time the new world currency "The Globe". However he has not allocated it from its interesting Utopia (1988) and has not made its subject of the publication and discussion. Shortly, the essence of this currency consists in the following, according to the author: «Contrary to all of the prevailing "Free-market versus protectionist" Capitalist thinking of current "world leaders", it ("The Globe") postulates the radical alternative approach that social & economic regeneration cannot be achieved by financially restimulating the old, failing (& originally 'imperialist-based') global trading economy, but in basing any new growth on a the old economic collective self-sufficiency of autonomous areas, with trade for necessary mutual exchanges of surpluses only & on the basis of harmonious, eco-sustainable sharing and non-profiteering life-styles!». Though The Glob is utopian currency, it is interesting, that its idea appeared 20 years ago in the threshold of world harmonization. It is, likely, the first idea of global currency in history.
Creation of essentially new currency is a very labor-intensive and long process. Absence of its binding to the separate countries, so, stability in long-term prospect would be a basic plus of introduction for new currency unit. The harmony currency – Harmon - possesses this plus as well as many others.
7.Necessity for the world and for the USA alternative currency of harmony
The problem of new reserve currency is boundary and central in transition from capitalism to harmonism, from industrial to a harmonious civilization, in change of the first in the second. This place of currency is defined by its significance as universal tool of an exchange and as major organizational mechanism of a world order for all countries and for all spheres of humankind. The currency mediates the decision of all national and global problems of humankind: wars, poverty, hunger, ecology, demography, education, health, culture, etc. From quality of currency ability of the people and humankind to solve these problems depends. The traditional currency promoted more aggravation of these problems. The new currency offered by the GHA – Harmon is directed on the solution of these problems within world interests.
The alternative currency of harmony is necessary for all countries, including the USA, it can be necessary for the USA most of all and first of all. We will compare pluses and minuses of dollar and harmon as reserve currencies for the USA.
Now the dollar provides for the USA two fundamental benefits:
1. For paper dollars they get real, not paper values worldwide.
2. For service of each dollar banks of the USA receive very big profits.
Certainly, while the paper dollar enjoys by a confidence of business and the population it brings huge dividends for the USA and do their by dominating country of the world. However, when a confidence collapse will be then there will be a crash of all holders of dollar: they remain with the empty pieces of paper. It will be crash not only world economics but also it will be the USA crash more and first of all. Therefore surplus of dollars is dangerous and to America, threatening with it collapse, which some scientists, for example Prof. Igor Panarin, predict already on 2010. Its forecast is not so far from true if to consider, that the USA every year now print on 3 trillions empty dollars. This soap bubble will sometime burst inevitably.
The empty dollar and an economic crisis fuel also civil unrest in US. In a press tens their facts are considered: http://www.presstv.com/detail.aspx?id=90028§ionid=3510203
Modernity puts the USA before a dilemma: or to keep the dollar domination in the world for some years (can be 2 or 4 or 6) and to be lost in its result, or voluntary and providently to refuse from dollar domination to developing global harmony. Then they should join in smooth process of transition to new reserve currency – Harmon through transitive (for 20-25 years) SDR currency. The USA can solve this dilemma from two opposite positions of national interest: false (mortal) and true (prosperity):
1. False, tactically (temporarily) favorable national interest of the USA consists in preservation of dollar domination as it is possible longer and at any cost, up to the country collapse and the global economic catastrophe fraught with world nuclear war and destruction of humankind.
2. True, strategically (eternally) favorable national interest of the USA coinciding with global interest consists in the prompt refusal from dollar domination and in the prompt recognition of the SDR transitive (for 20-25 years) currencies and workings out perspective reserve currency of the global harmony providing economic prosperity and for the USA and for all world.
What arguments confirming falsity of the USA tactical interest and truth of the USA strategic interest?
1. The more the USA will print dollars: not on 3 and on 5 or on 8 etc. trillions dollars a year, the more quickly they will approach own and world economic crash, which will bring to naught all time benefits of the USA from the press.
2. The USA press (overissue) will lead the country to economic catastrophe inevitably. It is a question only time: 2 or 4 or 6 or 8 years. The USA economy will be more and more similar to the drug addict, who has sat down on a dollar needle of the press.
3. President Nixon’s solution to refuse from the golden guarantee of dollar was strategically erroneous, historically fatal for US and for the world as it removed all barriers and restrictions for the USA unbridled press.
4. World financial crisis awoke in all countries clear understanding for dollar catastrophe and necessity to escape from it by all possible ways, including protectionism. That the countries leaders did not speak, in practice all of them silently encourage similar actions as adequate to the national interests. The former trust to dollar cannot be restored how many their trillions the USA would not print: the effect will be the return. The USA not in forces to stop this process. Its inevitable result is refusal from dollar irrespective of the USA and recognition of the alternative reserve currency, which discussion has begun already. This discussion will not stop anything as other countries do not wish to be hostages of dollar. The first call for dollar – world financial crisis – has rung out already. The historical song of dollar is sung. It is necessary to recognise irrespective of it is pleasant for someone or it is not pleasant.
Than faster the USA government realizes and recognizes these arguments, than faster it will pass from false to true national interest, than faster it will provide for the country the most effective, epoch-making and healing change, which was promised by President Obama. only in this case, i.e. when the USA will accept global interest as own national interest, they will strengthen themselves and will keep the world authority. Whether will find the USA wisdom for true national interest? It is a key modern question for the USA. The USA can survive and be rescued only in harmony but not in domination, including financial, over the world.
The GHA hopes and assumes, that in 2010-2011 the USA realize a malignancy of dollar as reserve currency for economy and the country and for the world. In this connection, it is natural to expect, that the USA will refuse from dollar as reserve currency, will agree on introduction of a new alternative currency on the transitive (20-25 years) period: SDR, uniting four currencies: dollar, euro, pound and yen. They also will agree with the beginning of working out the perspective global currency of harmony, which will be entered not earlier than in 20 years but the course on which should be accepted now.