Viche 2009 1

1, 2009

The American dollar is the one who is guilty (provocateur) in the world financial crisis.

The world financial crisis swallowed tall of the countries and took Ukraine. The world losses are now equal to 5 trillion dollars. This equals to 160 state budgets of our country. The economics suffer a great instability, and risks to face the biggest crash since the Great Depression. The unsatisfactory work of the world financial and currency mechanism, that was built on a dollar as a reserve currency, began to spread the inflation in the worlds scale.

The nowadays international currency system has no strict scheme of facing the stable trade misbalance.  So nothing stopped USA from collecting the deficiency of the current account, that from the 1980 reached a enormous amount 3 trillion dollars. This deficiency was and economical subsidy to the rest of the world, flooding the planet with dollars in the same time, that became a new international reserve asset instead of the gold.

There was created a huge uncontrolled and unregulated money wave, that went out of the human control and created many problems to the whole world.

In the time when Russia tried to conquer the world with the Lumpen ideology, the promise to build a communist paradise on Earth with the help of camps, military police and mass hunger. America successfully did this with the help of the dollar.

USA are making profit not only on a dollar as a world currency, but on using it as a treasure. Millions of people all over the world collect dollars, as it was with the golden coins, saving for future, as a stable reserve (as money for the funeral, medicine, presents to kids and grand children, on their education, trip abroad, etc.)

It only takes 3 cents to print a 100-dollar bill, but the profit is 99.97 of a dollar. With this purpose they use hundred million dollars. Its the most profitable business for the USA.

The refusing from the golden currency standard in the regulation of the international trade and currency relations have caused a mortgage storm, that disorganized the word economy.

It is necessary to implement a new way of providing the enough increase level of liquidity. This function could, for example, be performed by already known in the world the special lend rules (SLR).

G. Soros recommends to separate the SLR and the orientation to the development goals and their assistance. J. Stiglitz the Noble price winner, that now is a leader of the target group created by the decision of the 63 Assembly of UN for analysis of the global financial crisis says: One of the ideas of supporting of the worlds developments, that deserves attentions is a kind of a world money, that is produced by ICF, and the countries are ready to change for dollars or other world currency.

Instead of keeping the reserves in US dollars, the countries can be offered a new currency.

The implementation of the world currency will cause a great emission profit, that will belong to all the countries and not only held by USA, as it happens now.

The emission income from setting the euro now is spread among all the countries of EU. And what does Ukraine get from using of 80 billion dollars? Only losses, giving the USA over 50 billion of emission profit.

The prime Minister of Great Britain Gordon Brown thinks that it is necessary to change the world institutions: the Great Eight, ICF, WTO, to make them able to solve the new problems, connected with learning the new world currency policy.

We should get rid of the false understanding of the liabilities. This notion includes such meanings as what the money actually is, the money equivalent of the property, that all describes absolutely different relations. Often the notion of liabilities are explained like Liabilities is a collective name, a mane for a different kinds of money, that are used to substitute the property promissory notes of the private person and the state (see: Zagorodniy A.G., Vozniuk G.L. the Financial-economical dictionary. Lviv, published in National University Lvivska Politechnika, 2005 pg.122). the notion of the liabilities covers only that part of it, that is connected with creation of the commercial promissory notes as a result of selling goods, in other words their metamorphose.

What about the amounts that appear with selling the stock, obligations and other means of property relations they are not related to the emission of the  liability funds and they should be excluded from the money stock. As it is not being performed in the real life, their appear conditions, when the economical laws are violated, and, as a result the crisis situations are provoked.

Shumpeter said: we should agree with the fact that thesis the dept mints coins from the property doesnt reflect the real state of things (Shumpeter I. The theory of the economical development. M., 1982. P.210).

Mykhailo SHVAYKA