WASHINGTON, April 8, 2014 — “In our interconnected 21st century, no country can go it alone. National prosperity and global prosperity are linked; they depend, more than ever before, on our working together. The IMF is indispensable for this global cooperation,” concluded IMF chief Christine Lagarde a few days ago.
While the first part of Legarde’s statement is clearly true, the assertion of the IMF’s importance is overstated.
In today’s world, national prosperity and global prosperity are linked. One development to encourage financial globalization is bitcoin. Bitcoin supporters split away from the establishment, including institutions like the IMF, in an effort to create a global currency.
If national prosperity and global prosperity are linked, the world must find a way to accept a single global currency. Gold and silver played this role for a long time, over thousands of years in some regions.
Justin Yifu Lin, former chief economist for the World Bank, recently added his thoughts on a global super currency, noting that everyone is looking for monetary stability at the global level. The post dollar dominated world is already being debated by influential intellectuals and policy makers from around the world.
The bitcoin has gained cult status around many sectors of society for one important reason: it is outside government control and manipulation. To many sectors of society, bitcoins represent a truly transnational currency.
Bitcoin represents a common vision for those who desire money free from the government and the establishment. Governments, like humans, will always attempt to control currencies for their benefit. You cannot control gold or a digital, global currency.
The global establishment understand the inevitable need for a neutral global currency. However, the establishment wants a nationally currency that they control through institutions that will be created for the task, a global Euro dollar with something resembling a global central bank.
The IMF was created as a part of a post-World War II vision. At that time, leaders believed it would be better if nations could work together to achieve a better world for all of humanity. This vision has been replaced by new realities of growing emerging markets, with the rise of countries like China, India, and Brazil.
Bitocin is an opportunity to remove government controls and allow market forces to determine value. It takes power from institutions like the IMF, ECB, and the Federal Reserve, which want to be able to dictate economic policies.
That world needs a currency that will be perceived as neutral in all manners. Otherwise, the currency landscape is likely to fragment in the near future.
Bitocin moves the world toward pure economics, not crony economics. It is time to return to economics that respects the laws of supply and demand and the implications of tampering with those forces for quick political gains.