Matching oranges with apples or males with females has never delivered equitable results to say the least! The crisis on the planet rests on the bias factors that determine the value of the medium of exchange, an intangible printed-paper, with the tangible. Whilst the medium of exchange is inexpensive, with a printing press as a handy tool, political protection for the ‘reserve currency concept’ with the barrel of the gun-forcing acceptance, of the tangible in exchange of an intangible, by comparison, politically said, is for free! This is modern age piracy at its best! State of the art global robbery termed as the ‘only’ monetary regime to be followed by some primitive inequitable order. An order that addresses the global development in a very lopsided, unjust and discriminative manner.
The absolute and crying need of the hour therefore is to neutralize the printed-paper ‘value determination mechanism’ with a common global denominator for trade, based on universal exchangeability. Bilateralism and barter based value indexation for trade is about the only way forward. Multiple currency exchange baskets in the interim need to be adopted by central banks of individual nation states so that the continued bullying by self asserted global money managers can be laid to rest. The appalling size of the global population will remain subject to poverty under-nourishment and gruesome deaths because of wars and civil strife unless governments around the world agree that all discrimination is illegal and uncivilized.
The sundry currencies must return to their territories, to be contained therein and must cease to be treated as a commodity on the global roulette table to destroy peace. It is imperative that the world views the money regime anew for equity and global peace. This is not easy and will not happen happily because those who profit from an intangible will resist the proposition and brush it aside as insane. Like all commodities a ‘consumer front’ is the tool to blunt the onslaught of this heist. Countries that are debtors and therefore reliant on the reserve currencies of the world to aid them, meet their debt and or their development needs, must rally together. The question is finding the scales for value exchange determination for each trading entity, of the 186 to 200 odd Nation States and autonomous territories that figure on the planet. Without one single trading currency, controlled and regulated by one entity equitably, which is politically far-fetched, some other way has to be determined and structured.
Value for value equitably exchanged is only possible with the scales of demand and supply! There are two primary ways to address the issue:
One, that domestic currencies are border restricted and value exchange is done between Central Banks with trading partners based on one for one value unit of exchange; and
Two, that domestic currencies are restricted for circulatory volumes based on population head-count, yet are equally valued with all others and freely allowed to be exchanged for trade. The creation of debt can shift from banks to investors and can free the world of political hegemony pushing nations into subservience.
In both cases a global protocol is imperative for unanimity on the human sustenance standards and levels. Way more than the global concern for nuclear proliferation, which is a deceptive ploy for aggression and imperialism, the world should be concerned about the plight of the global population. How many are without potable water and how many are without nourishing food. How many are without healthcare and education. This ought to be the worry of a civilized world that must climb out of their violent and animalistic mindset.
Currencies are basically representative of value and value can be determined by the extent of natural resources duly assetized for value, or the population head count that does or will use that national asset. Of course demand versus supply will determine the variation or otherwise the volatility in a bank tender one calls ‘money’, and that is the liberty, which does enable or disables the sovereignty of a Nation State to figure bilaterally. In the case of Pakistan that supports a population of 220 million people a basic sustenance level of the population is required to determine the Governmental Expenditure. This is not inclusive of costs that are required to address defense needs or the cost for developing infrastructure. This money has to come from the land that is inhibited by a population and in the same stride that population needs the freedom of enterprise to use the natural resources, free of politics, to create value for the State. When populations are suffocated from exercising their right to free enterprise and are taxed instead on sundry counts one sees the demise of a production base and the will to labor.
It is time Pakistan addresses the liberty and independence of its people in place of a dragnet phenomena where we are seen to borrow and tax unabated without first addressing the need of freely allowing the economy to flourish on an even playing field. The country needs to only tax land and let enterprise come into existence free of holds and barriers. Let the money stashed away in the so called black economy be back integrated into the economy and let the liberty of human creativity take the reigns of progress from the ‘monkey syndrome’ of copying alien philosophies that regulate economic growth.
I am inclined to suggest the liberalization of all investment laws free of the bureaucratic thorn without which taxation is a foolhardy indulgence. Will the leadership please look inwards?
Mirza Shahnawaz Agha