Global Harmony Association (GHA)

March 27 – April 21, 2009

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8. Alternative Reserve Currency of Global Harmony: “HARMON” (H)

Pilot Project

by

Dr. Leo Semashko, project manager

and 67 GHA participants from 23 countries

From Russia: 29 coauthors:

Andrei Arsenchuk, Sergei Busoff, Yuri Dorofeev, Natalie Hramikhina, Ivan Ivanov, Dimitry Ivashintsov, Vladimir Kavtorin, Andrei Semashko, Igor Shadkhan, Alexei Shepel, Natalie Sidorova, Genrih Skvortsov, Grigory Toulchinsky, Tamara Trushnikova, Olga Ushakova, Svetlana Vetrova, Vadim Trifanov, Talgat Akbashev, Valery Gergel, Nina Goncharova, Igor Prihodkin, Alexander Semashko, Peter Semashko, Andrei Smirnov, Nikolay Strelkov, Tatiana Tselutina, Basil Smirnov, Peter Sergienko.

From other countries: 39 coauthors:

Ghassan Abdallah, Ammar Banni, Jean de Dieu Basabose, Tholana Chakravarthy, Renato Corsetti, Rosa Dalmiglio, John W. Forje, Mona Gamal-El Dina, Guy Crequie, Ananta Giri, Francois Houtart, Takis Ioannides, Tatomir Ion-Marius, Muhammad Iqbal, Ernesto Kahan, Dimitris P. Kraniotis, Rose Lord, Charles Mercieca, Nina Meyerhof, Kae Morii, Matjaž Mulej, Susana Roberts, Maitreyee Roy, Bernard Scott, Rudolf Siebert, David Stringer, Robert M.Weir, Jiang Yimin, Alexey Stakhov, Oleg Bodnar, Edward Soroko, Rama Narayana, Taki Yuriko, Patricia Rife, Lana Yang, Laj Utreja, Leonid Beluy, Sir Varant Seropian, Heli Habyarimana.

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Was approved by the coauthors, the Board, the Honorary Advisory Committee and the General Directorate of the Global Harmony Association,

April 21, 2009

Project publications:

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

Contents

1. The Main Conclusion from the G20 Communique, London, April 2, 2009
2. Scientific Basis for Alternative Reserve Currency of Global Harmony «HARMON»
3. «HARMON»: The Basic Qualities
4. Ways for Realization of Reserve Currency of Global Harmony

There is nothing more practical than a good theory

Ludwig Boltzmann

1. The Main Conclusion from the G20 Communique¹, London, April 2, 2009

The Communique analysis leads to a following main dual conclusion. o­n the o­ne hand, a 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 an alternative, balanced and reliable currency. This currency should exclude any possibility of new financial crises and solve global problems of humankind. It should provide what the traditional reserve currency is not able to provide, e.g., to give any guarantee against recurring crises, as well as solutions of global problems. Therefore, the G20 kept the possibility of alternative currency searching that some leaders expressed after the end of their summit. (A detailed analysis of the Communique and conclusions from the analysis see o­n the site²).

In line with this tendency, the Global Harmony Association (GHA) as a representative of the world civil society offers this project of alternative reserve currency of harmony (Global Harmony Reserve: GHR) or «HARMON», briefly: «Н» for public opinion, for the G20 leaders and for International Monetary Fund (IMF).

2. Scientific Basis for Alternative Reserve Currency of Global Harmony «HARMON»

Based o­n Tetrasociology³ as a 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 the harmony of the 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 sources of the most of 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 with any national or regional currency. In general, it should be provided by two defining reasons: 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 created neither 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. Nation is not o­nly a source of power but also of a currency, therefore not o­nly the power but also the currency belong to the people. This is a truly democratic vision of the currency, instead of traditionally imperial or elitist. Any currency is provided by the population, which is the sovereign proprietor of this currency. A different 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. 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 the harmony of the global exchange and production. o­nly such currency is able to exclude any financial crises forever. 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 under control of the government to minimize bank speculations and to maximize their harmonization. It is obvious, that the proportion 50:50 between private and state ownership is the most harmonious though, of course, from it the most different exceptions are possible for different countries and for their different stages.

Now we will be limited by these four scientific bases of alternative reserve currency, which demand for 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. U.S.Dollar is a 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 globalization, the necessity becomes understandable that a new, global currency will be realized within 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, when the conscious transition of the humankind to a harmonious civilization will be originated.

2. Harmon as a world reserve currency is created and will be used o­n the basis of international law as «International Charter of Harmon», accepted in accordance with the 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 towards the 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 o­n richness of four sphere classes and o­n 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 according to 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:

– the first fixed part which is equal to a certain amount of Harmons, which can not be spent, except in extreme cases of global accidents and threats, it serves as a stabilization fund and as a guarantor of currency reliability;

– the second part is intended for special purposes: providing with a standard of living and currency target using;

– the third part includes all means above the standard of living.

The living wage includes five kinds of purposeful currency:

1. For the food, to exclude the hunger;

2. For the habitation, to exclude the homelessness;

3. For the harmonious education, to exclude the illiteracy and provide with vocational and harmonious training;

4. For the health, to provide for minimum level of health services;

5. For the ecology, to provide for acceptable level of humans’ natural environment.

These kinds will provide with fundamental human rights and resolution of corresponding global problems.

7.4. The fixed and purposeful parts of a H–account are formed at the expense of means of the owner’s account, 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 everysphere 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 a 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 to Internet, but with 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 Harmons are open for the democratic control at all the 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.⁴

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 U.S.Dollar as the traditional reserve currency and overcomes all its historical lacks.⁵

Before to become a global currency, ‘Harmon’ is used as regional currency in o­ne or several international regional associations.

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 other 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 are planning to be ?4 million, including the salary of employees ?2.5 million (?7 thousand per month o­n average for each employee) and ?1.5 million for arranging 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 by the end 2010 and at the beginning of 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 U.S.Dollar and completely not superfluous. Otherwise, in case of a new financial catastrophe of U.S.Dollar (it is inevitable, when the destiny of humankind is given into 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 trained 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 o­n constantly depreciating U.S.Dollar, which can lead economy of the USA to catastrophe and the country to collapse (see specified "Analysis" for more details). In this connection, the GHA assumes that in 2010–2011 the USA government will realize a malignancy of U.S.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 U.S.Dollar as the international reserve currency and agree with the introduction of the new alternative currency in the transitive (20 years) period: SDR, uniting four currencies: U.S.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 this 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 can contain some 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 byDr. Matjaž Mulej, Prof. Emeritus, University of Maribor, Faculty of Economics and Business; Slovenia, April 19, 2009.

1 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.

2 http://peacefromharmony.org/?cat=en_c&key=367

3 Tetrasociology: Responses to Challenges by Leo Semashko, St-Petersburg, 2002: http://www.peacefromharmony.org/?cat=en_c&key=145

4 World Harmony/Peace Academy, 2008: http://www.peacefromharmony.org/?cat=en_c&key=277