The international monetary system, functioning as glue, binds together the global monetary, financial, economic and commercial systems. The present international monetary system, characterized by a fundamentalist free market system, by financial imbalances and their volatility of exchange rates with their associated disputes about managed and market-based exchange rates, by currency speculation and manipulation, its lack of effective regulation of capital flows and derivatives and, last but least, by a costly global reserve system with its unfair seignorage system, is unjust, unstable, and unsustainable. It is unjust because mostly operates for the benefit of hard currency countries while the rest of the world and the global economy itself suffer. Because the international monetary system is unjust, it is unstable and unsustainable.
Making monetary justice the basis for G20 and Earth Summit negotiations would consist of three major challenges dealing with needed transformational changes in the privately-owned banking systems, in the debt-based financial system and in the dysfunctional international monetary system which is called criminal by Nobel Prize economist Robert Mundell. First, banks are to become utilities without the privilege of creation money. Second, the financial system is to be based on money or credit which only the government can create and circulate into the economy. The Chicago Plan of the 1930s, proposed by many outstanding economists to deal with the Great Depression, is an example of such system Cf. www.ami.org Thirdly—the most challenging transformational change of all—the international monetary system is to be based upon a standard, not a gold, but carbon standard and governed by the Global Central Bank with its administering, monitoring, regulating and money creating functions. This novel concept is presented by www.timun.net with its forthcoming book entitled THE TIERRA SOLUTION: Monetary Transformation, Climate Change and Sustainable Development. (Cosimo Books January 2012) Adopting such carbon-based international monetary system would constitute a global monetary governance system that could be the basis of a comprehensive global governance framework beyond Rio 2012.
In conclusion, signing this petition means that you believe that monetary justice is needed in global deliberations and negotiations to transform the global monetary, financial, economic and commercial systems so that humanity can live in social and ecological peace in the 21st century. (For context, see http://www.earthsummit2012.org and the September 2011 DPI/NGO Declaration where governments, among many other things, are called upon in Line 265 “to rethink the monetary system to be based on a carbon standard.”)