9 October 2003 – Single Global Currency Assn interview on Maine Public Radio
"Mainer pushes for single global
A new, colorized $20 bill was released on Thursday. It includes splashes of peach, blue and yellow. And if Morrison Bonpasse has his way, it will be utterly obsolete in less than 25 years. Bonpasse has formed an organization dedicated to creating a single, global form of currency. The Single Global Currency Association is based in Newcastle, Maine. Bonpasse told Keith Shortall that a single currency would provide more stability in the global economy by eliminating problems caused by wide fluctuations in exchange rates.
(The web summary contains the audio interview as well.)
9 October 2003 – Two Professors, Collaborators in Econometrics, Win the Nobel
This article reports on the two winners of the Nobel Economics Prize, Robert F. Engle and Clive W.J. Granger, for their work in econometrics – the measurement of economic factors. "In the late 1970’s, however, Professor Granger developed ways to analyze the relationship between two statistics that had both a long-term trend and an element of randomness." "Professor Engle’s primary work improved the understanding of volatility, particularly in the stock market, and enable economists to make more accurate forecasts. Previously, researchers were often forced to assume that volatility did not change over time. The volatility of currency exchange values was one area studied by both professors. (NY Times, Business, page PC1)
9 October 2003 – Currency Rumors in China Shake Hong Kong
This is an extraordinary New York Times article about how small changes in value of one currency, the Hong Kong dollar, can cause financial havoc. Traders in currencies, including speculators, had apparently assumed that the Hong Kong dollar would deflate due to a slumping Hong Kong economy. However, due to the downward trend for the U.S. dollar, to which the Hong Kong Monetary Authority has pegged the Hong Kong dollar (at 7.8 to the $ U.S.), the traders and speculators lost an estimated $250 million over the past two weeks as the Hong Kong dollar has increased in value above the 7.8 mark.
Some people have thought that eventually the Hong Kong dollar (now at 7.8 to the USD) might be merged with the Chinese yuan (now at 8.28 to the USD), but the official message is that the two currencies function in different economies, even though Hong Kong is now part of China. [Note by SGCA: This article shows the enormous, obsolete and wasted, effort that must be spent by legitimate companies to maintain the vaue of their currency holdings, often resulting in losses. Also, it shows the effect of speculators on currency values. We say "obsolete" and "wasted" because the use of a single global currency would eliminate these reported currency transactions. ] (New York Times, World Business, page W1)
7 October 2003 – Singapore and Thailand Urge Region to Integrate
Singapore and Thailand urged the other 8 countries of ASEAN to work with them to form a Common Market by the year 2020. The other countries are: Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines and Vietnam.
The Prime Minsiter of Thailand, Thaksin Shinawatra urged the group to follow the example of Europe and move together toward economic unity. He said that Thailand and Singapore would strart the union alone if the other countries did not participate.
(New York Times, World Business)
6 October 2003 – Nintendo Co. "Loss is Expected for First Half On Foreign-Exchange Setback"
Nintendo estimated a loss of 3 billion yen ($27 million, computed at 111.11 yen to the dollar), which was its first loss since its shares were first listed in 1962. The primary reason for the loss was its booking of a 40 billion yen loss ($360 million,or 7.2%) due to foreign exchange changes. The problem was that Nintendo had approximately $5 billion in cash deposits in the U.S., and a drop in the value of the dollar caused the loss. (Wall Street Journal, page B3)
[Note by SGCA: Such financial results have nothing to do with the productive health of the company and they would not occur in a single world currency world. SGCA sent the letter below to the Wall Street Journal:
To the Editor:
The report showing a loss of 3 billion yen ($27 million) due to a 40 billion yen loss ($360 million) shows the uselessness of the current foreign exchange system. Reports of corporations should show their real value, as a product of their workers and technology. They should not be hostage to the whims of the exchange rate. In August, Nestle reported that its profits were hurt by the high value of the Swiss Franc. Nintendo and Nestle should both support the implementation of a single global currency, which would eliminate such artificial measurements.]
6 October 2003 – "Japan Defends Its Methods for Supporting Yen"
Finance Minister Sadakazu Tanigaki said "There are various methods that can be used in intervention."
Tuesday’s intervention, by selling yen, was the first clear effort in several weeks, and the Finance Minister’s announcement of the intervention was unusual. It accomplished the selling through its account at the Federal Reserve. The Finance Minister explained the intervention not as a means of keeping the yen low against the dollar, but as an effort to stabilize the yen in the foreign exchange market, "when speculative moves make the market disorderly, we must take firm action." [Note by SGCA: A single global currency would make such interventions unnecessary.] (Wall Street Journal)
2 October 2003 – “China’s Exchange Rate Regime and its Effects on the U.S. Economy”, Testimony by John B. Taylor, Under Secretary of the Treasury for International Affairs
In this testimony before the Subcommittee on Domestic and International Monetary Policy, Trade and Technology, of the House Committee on Financial Services. Mr. Taylor described the overall international economy and the effects of China’s efforts to keep the yuan at a low value relative to the dollar. China’s foreign reserves have increased massively since 2001, from $153 billion to $360 billion, primarily through the purchase of U.S. Treasury bonds to keep the yuan low. This, of course, has helped the U.S. float its huge budget deficit. Mr. Taylor was encouraged by promises from China to move toward a floating exchange rate system. [Note by SGCA: Alan Greenspan has said that one of the two ways to eliminate the foreign exchange reserve problem is to implement a single global currency. See this website at What governments say about the single global currency.] (Press Release from the U.S. Dept. of Treasury.)
24 Sept 2003 – Strong Dollar, Weak Dollar: Anyone Have a Scorecard?
This New York Times article sorts out the plusses and minuses of a "strong" or "weak" dollar, with the added message that moving fast in any direction is also hazardous. [Note by SGCA: Of course, all these very, very expensive and hazardous shifts would be unnecessary and unheard of when the single global currency is implemented.] (New York Times, by Edmund Andrews, page C1, Business Day)
23 Sept 2003 – Stocks Sour on cheap dollar
"Stock prices tumbled yesterday around the world as investors worried that a new round of curency moves aimed at weakening the dollar could spell mroe trouble for the U.S. ecnomy at home than it would stimulate demand for US goods abroad." [The people of the world want stable currencies and as that is not possible under the existing exchange rate system, the people of the world should be given a stable single global currency.]
(Boston Globe, by Stephen J. Glain, Business, page D1)
23 Sept 2003 – Yen Surges on Statement by Ministers
The New York Times reported that the yen rose to 33 month high, which was nearly a 45 increase from the previous few days. This was considered to be a direct result of the G-7 Communique which encouraged floating exchange rates and which discouraged the Japanese Central Bank from its previously massive currency interventions to keep the value of the yen low, relative to the dollar.
The article cited HSBC Securities for the view that "a 10 percent rise in the yen shaves about half a percentage point off Japan’s economy over a two-year period." (NewYoirk Times, World Business, by Ken Belson, Page W1)
23 Sept 2003 – Portland, Maine USA Press Herald publishes Op-Ed from Single Global Currency Association: World needs a single global currency.
The Press Herald published the first Op-Ed from the SGCA. The article describes the need for a single global currency and its expected benefits. (Portland Press Herald, page 11A)
20 Sept 2003 – Statement of G7 Finance Ministers and Central Bank Governors at Dubai Conference.
Among other statements, the Finance Ministers
stated: "We reaffirm that exchange rates should reflect economic
fundamentals. We continue to monitor exchange markets closely
and cooperate as appropriate. In this context, we emphasize that
more flexibility in exchange rates is desirable for major
countries or economic areas to promote smooth and widespread adjustments
in the international financial system, based on market mechanisms."
(Statement from U.S. Treasury Press Release)
20 Sept 2003 – U.S. to Ask Group of 7 to Shift Its Policy on Exchange Rates by Bloomberg News
"Treasury Secretary John W. Snow said yesterday that he would ask the Group of 7 industrialized nations to change its policy for the first time in more than six years and back “flexible” currency exchange rates.
Mr. Snow will use six hours of talks on the global economy this weekend in Dubai to seek support for his campaign against governments that manipulate the value of their currencies to bolster growth, like China and Japan. The United States wants the idea that markets should determine exchange rates mentioned in the group’s post-meeting statement.
“The world trading system works best under a regime of market-based exchange rates,” Mr. Snow told reporters as he left Pakistan for the United Arab Emirates. “It would be useful if the communiqué expressed support for flexible exchange rates.”
While Mr. Snow said he was not asking the ministers to “single out” specific nations for criticism, analysts said his sights were focused on China’s eight-year-old currency peg to the dollar and Japan’s recent record sales of yen….. " (In New York Times, 20 Sep 2003)
6 Sept 2003 – SGCA Launches campaign for SGC Conference
The Single Global Currency Association sent a request to the 30 OECD member countries asking their Finance Ministers to convene a conference to plan for the single global currency. The letter was authorized by five economists: John Edmunds, Robert Guttmann, Ratnam Alagiah, Robert Schwartz and Christopher Budd.
The letter, (click here to see letter), will remain posted on this web site, and the SGCA will continue to seek additional authorizers. (If you are an economist and wish to add your name to the list of proponents, send email to:
[email protected]. Periodically, the letter will be resent to the OECD members until the conference is scheduled.
31 August 2003 – New Political Party Established in India with single global currency in platform.
The new party is called the Lovers’ Green-Globalist God-free-Humanist Party of India and membership is open only to those who are married or are considering it. It has a number of unorthodox goals, but the history of democracies have shown how the marginal issues of some parties have come to the fore in subsequent elections. Often thoe issues are then claimed by other parties. The article stated, "Some revolutionary aims of the party are working towards a world government, elimination of national armies, integration of national economies into a global economy with a single global currency ‘Globo’ on the model of ‘Euro’." (The Sunday Tribune, Chandigarh, India)
27 August 2003 – Japan spends Billions to Reduce Yen
Japan has intervened in the international currency markets by spending over $75 billion (9 trillion yen) to buy dollars which has the effect of depressing the value of the yen relative to the dollar. In the previous three years, Japan spent 10 trillion yen for the same reasons and with the same effect. (New York Times, 27 August 2003, by Jonathan Feurbringer)
The article cites estimates that without the intervention the value of the yen would rise from it current 117.26 to the dollar about 12 percent to 105 to the dollar. This suppression of the yen has the effect of increasing exports to the U.S. and decreasing imports from the U.S. (New York Times, World Business, 8/27/03, by Jonathan Feurbringer)
25 August 2003 – Australia affiliate for SGCA
Professor Ratnam Alagiah of Griffiths University at Queensland, Australia has joined the Single Global Currency Assn. (SGCA) and announced plan to start an affiliate Single Global Currency organization in Australia. This organization will help mobilize academics and the people of Australia to support the implementation of a Single Global Currency.
21 August 2003 – Swiss Franc Value Hurts Nestle Profits
Nestle, the world’s largest food company, headquartered in Zurich, announced that its profits for the first half of 2003 fell by half from a year-ago, hurt by a strong Swiss franc. (New York Times, "World Business", "Strong Franc Helps Reduce Nestlé’s Profit", page W1, 8/21/03). Such a report will become obsolete after the implementation of the Single Global Currency, as there will be no gains or losses due to changes in currency exchange rates.