MacroMouse - Trade Policy Prescriptions
MacroMouse - Trade Treaties - What Is and What Can Be
WTO Information - Why Have A World Trade Organization?
And The New Zealand Trade Liberalisation Network
Institute for International Economics - Trade
The WorldGrowth Organization
The Official WTO Site
This is America - we can do anything. Right now we're simply evolving through the academic rational ignorance of the internet - but, all we're looking for is balance, and real social balance is only created through law - truly balanced law. Kenneth Dam in "The Rules of The Glabal Game" has stated "Currency is a country's most important price" - I concur. So, in my opinion, we need a WTO with a gold plus standard, or global tax and markets equality. It should include a declaration of international democratic sovereignty - but, that must be defined as balanced price treaties. We need an international constitution of commercial trade and democratic rights based on knowing these five principles:
1. The public good is best served by best pricing practices in our, and all global, capital markets.
2. The public good is best served by best policy taxing systems, and by best tax haven reform.
3. The public good is best served by best currency and monetary system reform policy.
4. The public good is best served by best purchasing price parity equilibriums.
5. The public good is best served by best balanced sovereignty and autonomy practices - and laws of said.
- Otherwise, money is simply the law of the world!
Here are five short summery paragraphs explaining the above principles:
1. CEO Henry Paulson Jr. of Goldman Sachs first suggested this idea on the PBS Charlie Rose show. He stated that if the powers that be integrated the five U.S. commodities markets, better pricing practices would be achieved. He further stated the better idea of moving from the specialist system of the New York Stock Exchange to one of computerized market makers, and better pricing practices would also be achieved, and I concur. If we computer united the five commodities exchanges into one integrated market system of trades, the public and stakeholders would be saved billions of dollars in unnecessary market transactions. Under such a system all traders would be trading into one market, saving the divergences of arbitrage and speculative pricing moves, that presently exist. In the commodities markets, this same idea could be integrated globally, to save many billions of dollars in divergent market arbitrage and speculative needless systemic costs, involved in the many nations' trading systems. And, by going to computerized trades over specialists, the markets would also be saved much needless expense in this market. These ideas, if instituted, would work toward improving the public good realized from our and other's capital markets' experiences, and thus realize real savings of these increased efficiencies - not to mention, more stability and balance.
2. Tax systems and the tax havens are without a doubt the most difficult and controversial area where improvement is required. The political hurdles to surmount this mountain of troubles is huge, yet achievable if we had just one president willing to use the bully pulpit, of his office, to awaken the world to this massive problem, and work toward real reform globally - as this one must be done simultaneously - globally. To act alone is to cut your own nation-state's throat, as the corporations are too free to move away from any one nation's increase in taxes and real reform to reign in the tax havens. The problem is so severe that last year corporate tax collections dropped to an average of 5%, and less than 0% for many. All the world's nation states are in real competition for needed public funds with the corporate virtual state and its 90% share of all global international transactions - and 95% if derivatives are fully counted. I think you can quickly see the problem from the above, and all figures can be checked at C.H.I.P.S. and the B.I.S. I see no way to resolve this serious political/financial problem except a concerted political action by many to put pressure on the president or finance and trade institutes to take real action, yet it must be done if we are to survive the future, without losing everything we have socially gained over the last 100 years.
3. As stated above by Kenneth Dam, "Currency is a country's most important price." It is the crucial balance of our entire monetary and law system - destroy this central balance and you can destroy the nation. Currency and monetary reform policy have been put forward by many notable economists, such as Paul Davidson, Jane D'Arista, James Robertson and even myself. In my opinion Paul Davidson's is the best in print. He covers the subject in its entirety, and has been writing about it since the seventies, in many articles and books. Paul holds a Ph.D. in economics and is the head economics professor at the University of Tennessee. His and other's listed works are below and I would refer you to said articles for a full explanation of this principle. I will state that the world of capitalism is a competition of sovereignties, all fighting for best prices for their own individual autonomies. Trade treaties must be negotiated to achieve the most balanced sovereignty and autonomy for all concerned - this is a humongous task, not to be taken lightly. All nations must work toward better balances in currencies and monetary systems' laws - through a concerted cooperation, lead by the U.S. Though the job be daunting, it is possible.
4. I will simply explain this principle by entering a paragraph I have often quoted: We should support laws toward re-aligning currencies, wages, and prices to true purchasing price parity equilibrium, to create a level playing field, to stop excess offshoring, outsourcing and insourcing, neutralize nefarious trade and transactions' extractions, return the IMF, World Bank, and WTO to work the public good again, rebuild global subsidiarity to sustainable levels, to found truly viable comparative advantage - globally, reduce speculation and excess debt and create jobs - by saving trillions of dollars through said global re-balancing. I am not alone in my opinions, many other professional economists are also calling for a similar real global re-balancing. Even Greenspan and Bernanke, at the Fed, have supported reform but fear of action yet rules supreme. It should be further explained that capitalism is simply or profoundly the negotiation of prices. In the international field this takes on mammoth proportions as all nations must negotiate the inter-meshing of all nations national sovereignties and autonomies, through their associated prices - yet our eye must be centered on a true future purchasing price parity balance.
5. This fifth principle more or less explains itself. It is the combination of all the above. The only point I would make is that all must be accomplished through a fair and balanced process of the creation of new laws, centered on a goal toward a true future equilibrium. Here's a quote to explain why the above is necessary: "We need a fixed value monetary system. At the present time, we have none. Under floating exchanges, America is simply a powerful ship on an ocean, with no rudder. Old gold, silver, and other known standards will no longer work. They will not work due to the massive increases in communication's speed, the varied endowments of nations' natural resources, and encrypted international speculative opportunities. Therefore, we need a new system."