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PCU, new world reserve currency?
Filed Under (Breaking News) by Ian Richardson on 29-06-2009
I’ve been working closely with a very successful businessman who has been teaching me quite a bit over the past few weeks.
He wrote something recently that I wanted to share with everyone and get some comments happening on what he has to say.
Here’s what Charles had to say (or write in this case).
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A regional and trade currency is developing fast. The often discussed Pacific Currency Unit (PCU) incorporating the Australian Dollar, Canadian Dollar, New Zealand Dollar and United States Dollar are moving to convergence rapidly. It is rumoured that the Reserve Bank of Australia (RBA) and central banks of Canada, New Zealand and United States are near agreement on a single currency as a synthesis of those currencies, and it will incorporate the Pacific Islands.
It has been concluded from research emanating from Stanford University over a number of years that the time is now approaching for the creation of a Pacific Currency Unit (PCU) embracing the AUD, CAD, NZD, and the USD as a regional and perhaps reserve world currency.
It is believed the PCU could assist the rest of the World to significantly release itself it depended on US currency and US Economic policy., in perhaps becoming a new world currency, could assist the rest of the world release itself from total dependency on the US currency. Research and analysis on this initiative commenced at the Stanford Business School many years ago.
This foregoing view has been a pursuit through research and value analysis conclusions of banking sector participants. The belief that the Australian dollar is clearly undervalued, compared to the US dollar and certain other currencies, is now widely held and confirmed by the purchasing power parity theory in the long term. The pending revaluation of the AUD to parity with the USD in the free foreign exchange markets is gaining pace with a view to it occurring within a very short time.
To establish a model for the PCU one must observe the evolution of the European Currency Unit (ECU). Other regional currencies have been mooted in recent times, however the dissimilarity of their monetary and fiscal policies have not allowed them to develop. This refers to the TIGER, AMIRO, and the Asian Pacific Currency Unit. However, the development of the ECU has provided the opportunity for a more efficient trading environment based on a single currency because of the consonance of critical economical variables. Its success over the last fifteen to twenty years has confirmed that the creation and development of a regional currency can benefit significantly countries of similar political, economic and social structural dimensions.
It may be said that geographic proximity may be a factor in the development of trading relations, as it is clearly more advantageous to trade with neighbouring countries. This engenders closer political associations and fosters other relations beneficial for each country. In the case of Oceania other factors outweigh this variable.
However, from a regional perspective, a pecuniary link between Pacific countries might act as a conduit for political and/or economic accountability and cooperation. The PCU is a concept that would be very attractive to financiers, traders and as well governments.
The logistics necessary for the development of the PCU are to say the least, quite significant. A foremost consideration is the ideological differences and similarities among nations and in the case of Oceania these are fundamentally minimal. The ever increasing trade volumes within the Oceania region have created the need for a common currency or monetary instrument that will facilitate transactions and minimize exposure to exchange fluctuations.
The PCU would allow hedging of currency risk and act as a widely accepted currency for trading purposes and as well represent a benchmark. With the current GFC, nations whose currencies would be represented in the basket during these challenging times would seemingly be more co-operative. Such co-operation is more feasible when facing a common challenging world economic predicament.
Currency traders love the Aussie dollar so it is recommended to buy because it is mooted to rise to parity with the US dollar soon. Apparently the same goes for the NZ dollar.
For further information please refer to http://www.TheScarfamTrust.com
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So there you have it.
What do you think?
Please leave a comment as I will be showing Charles and he is very interested in what others think.
Catch you later
Ian
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- Stop paying annual interest to the Federal Reserve on all US currency in circulation!
- Petition the FDIC.. America NEEDS To Take a Stand
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Josiah@Free ipad (1)
investing in the australian or new zealand dollar’s imply that they have not been as affected by the global recession, but that isn’t true. I think that Australia is the next big economy to struggle and if anything it would be the worst time to invest. Arguably the best time to invest in the dollar is now because i think the worst has passed for the US.
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Australian and New Zealand economy is better compare to other nation nowadays but if you wish to invest with their currency you need to study how it goes, Their currency may rise like the U.S. dollar value and if this happen that will be a big problem in terms of U.S dollar. I will still suggest to study how it goes with their currency.. Good pint of view, I must say.
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It would be really amazing to see if the if the Reserve Banks of Australia ,Bank of Canada, Bank of New Zealand and America form a union against currency. I have been hearing about it from many days and i won’t be surprised to see that they come together.
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As it is the recession time it is necessary for different counties of the world to come together and form a union and to try work together. It is good to know all the nations are banking together and setting and example for the rest of the world.
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Changes are really very necessary for up bringing of any country. Its very good to see that all the counties are coming together.
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I have a hard time believing that this will ever be the case but if it is then this is a strong sign to the fact that the US economy is f***** and that the US government will need to go to extremes to save what can be saved and by doing so hopefully avoid going totally bankrupt.
The reason I doubt this is that if the other governments knows just a little bit about economics they wouldn’t want to partner with the US as that could very easily bring their own economy towards bankruptcy.
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That was interesting to read. I look forward to see how they`d struggle with the USD over the world rule))
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I think it is a great risk involving all the counties together and if any misunderstanding happens then there would be a real problem.
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it is a very big example for us to be against the recession & it will be very good to see the union of the top three most powerful by their economic countries coming together to face the economic crisis & to defeat it !it will be a very awesome scene only i want to say just wait & watch the whole show!
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really nice post, author should be appreciated .
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I seriously doubt that this currency will come into existence. In the USA, there is already legislation to bring in the Amero, which will combine the Canadian Dollar, US Dollar, and Mexican currency into one.
Unfortunately, almost every country’s currency is controlled by a private banking system with fiat money (not backed by gold or anything), which causes the booms and busts. It just dilutes our money and increases the divide between the rich and poor.
If you ask me, any new currency that ‘blends’ countries together is just a BAD idea. Let’s go back to a standard where money was redeemable by some precious metal or something that can’t be created out of thin air.
Just my two cents (USD) (which was equivalent to $1.00 USD back before the Federal Reserve in the USA took over in 1913).
Peace out,
Ryan Thompson
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Cool. A single, unified currency would be a hell lot of easier to use for travellers.
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Hi just thought i will let you know that i also had a problem with this blog appearing frozen also. Must be gremlins in the page.
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