Trading Without Trade Deficits

26th March 2012

Give Us, US Free

Please Liberate us from having to convert our currency into yours in order to eat....

Slave currencies that must be converted into Master
currencies or hard currencies before countries can
purchase goods & services on the international
market are an infringement of civil and human rights.
Anyone who has watched Amistad, Directed by Steven Spielberg, is likely to remember that poignant moment when these words where spoken by Djimon Hounso. 

It is people of all races, of all walks of life, educated and less educated making this plea to governments to revise the international trade system. It is not uncommon to hear of modern day slavery , in the form of child slavery in Haiti, Human Trafficking; the CNN Freedom Project speaks of ending Modern Day Slavery. But what about the modern day international trade system overseen by the WTO? The currency trade is not very different from the slave trade if analysed from the perspective of human rights. The infamous transatlantic slave trade which has come to symbolise the human rights of all peoples and all races today was built on exploitation of labour, discrimination, hegemony and inevitably a struggle between those who benefited from it and those people, states and nations who wanted it abolished. In this context the net exporter can be compared to those benefiting from the slave trade and the net importer amongst  those seeking greater equality (fair trade) who would  want it abolished in a society where the owners of master currencies are the sole elites allowed to own slaves (slave currencies) made to perform chores and work (climb over trade and currency barriers standing in their way) for free or nothing. The hard currency that is tradable has become the modern day plantation which every master would like to own and have worked by those who must convert their local currencies into hard currencies in order to survive.

...the international trade system and its framework is a form of modern day slavery.

It may look like children are queuing up for food, but
in reality they are queuing up for forex or hard currency
because the currency system does not recognise them
as human beings deserving of human rights in
the international market.
Most who are ignorant of being currency slaves today would say , "Well, if I want hard currency I can just get into my benz drive to a bureau or bank and exchange my local currency for forex, I can even swipe my card for it." The fact is that a hard currency can demand goods and services in the international "super" market directly off the shelf, it does not need exchange - it is a master currency; it walks in through the front door. Furthermore, before a slave currency can buy equipment to produce, purchase medicines to cure the sick or buy food to feed the hungry, even during a famine where people are dying like the one in the Sahel right now, it must first work the plantation. In other words it must first drill for oil, mine diamonds, copper or some other ore, harvest cocoa and bananas merely to earn the master currency and service through the market's segregated rear window. As much as donations and appeals for food aid are appreciated why can't these starving famine stricken people be give their human rights by the currency system so they can stand tall, walk through the front door of the international market and feed themselves?

As long as governments in poorer countries 
do not assert the equality of their local currencies
to hard currencies by demanding a just and equal 
currency system humanity continues to suffer.

It is only by first working the "plantation" (mining, drilling, exporting etc) that slave [currencies] can access what they need to be productive and healthy, they do all this work for free in real terms because a hard currency is not necessarily forced to do the same work. A slave currency cannot walk through the front door of the international market, it must go to the little colonial bureau window at the rear of the international market and queue up to exchange its "local currency" to buy food or the implements needed to produce food.

Sovereign countries working and producing goods merely for access to forex as a "passbook" to international markets are being duped in a complex use of commerce that abrogates human rights to fair currencies and just trade sovereign nations, reputable governments and innocent populations deserve to have protected. The currency system is an unacceptable institutionalised travesty that makes poorer nations fail to break the chains of poverty. It  disenfranchises entire populations making them prisoners and refugees in their own land where they are often unable to feed themselves as a result of being turned away by master currencies. This it seems turns entire countries into nothing more than dignified "slave plantations" where distinguished people, even those in suites and ties, appear as beggars instead of human beings on the whim of today's currency system.No country wants to depend or seem to beg for development and aid indefinitely, all these governments struggling today  to grow their economies and feed their people are asking for is fairness and justice, give them this and no doubt they will feed themselves and contribute to the world.

It may look like a child dying of hunger cannot feed
himself or herself, but in reality the child is dying and
cannot eat because the child is not allowed through the front
door of the international trade and currency system, it
must "mine some copper" or "grow some bananas"
for export first. This is the corruption and hypocrisy 
keeping millions of innocents chained to despair.
In the same way the transatlantic slave trade made many exceptionally wealthy but also caused hardship, economic difficulty and great suffering for others the international trade system today creates the very same problem as many nations consisting of people from all races and all walks of life struggle through currency barriers to sustain their economies enough to provide for citizens while others enjoy either no currency barriers and deficits or comfortable trade surpluses and no hard currency barriers. This creates a wholly unsubstantiated trade system where nations must undermine one another to survive economically. They even go as far to do this as part of their conventional trade policy and business processes. The current international trade system may be viewed from this perspective as uncivil and uncivilised; it may make neither social nor economic sense and its limitations may make it defunct when it comes to its usefulness to commerce. 

Please liberate us poorer nations from having to convert our currency
into yours in order to eat….

It is pointless to continue to hold back so many nations and keep their peoples in shackles. The world today needs a fair and just international trade system. In an ECH trade system unconditional equality is brought to currencies consequently bringing equality to nations and their diverse peoples. Currencies become unconditionally equal, that is, unconditionally exchangeable restoring human [commercial] rights at the trade and finance level. Currencies in international trade no longer bypass central banks that now cooperate through an ECH debit and credit system removing the need for currencies to cross borders. 

In this new model countries that are net exporters can continue to enjoy the benefits of being net exporters without injuring countries that were net importers in the old system. Both net exporters and net importers benefit as a result of this change in international trade architecture.  

Trading Without Deficits

Do you know it is possible to demonstrate that countries can trade without trade deficits and in a way that prevents inflation and deflaton...

The international trade architecture needs to change
Countries trade with one another on a regular basis. International trade is often a critical source of income especially for countries that depend on a specialised exports. Zambia for instance depends on copper exports. International trade is important for another reason and this is to earn hard currency or foreign exchange. 93% of Zambia's foreign exchange is earned through copper exports. International trade is so critical to the health of an economy that worsening trade conditions can greatly affect the overall well-being of an economy by weakening or strengthening local currencies and creating or losing jobs in the export sector. Most feared amongst the potential problems associated with international trade is the trade deficit.

A trade deficit is a condition where a country imports more goods and services than it exports. As a result the domestic economy experiences a loss in earnings. More money leaves the country to pay for goods and services brought in from abroad than the money entering the economy as a result of people abroad purchasing domestic exports. Not only does the loss of revenue affect income, this income is denominated in foreign currency creating a condition where there is less foreign exchange to back a local currency which results in it losing value, that is, experiencing inflation.

The scenario described here characterises the structure or fundamental framework of modern day international trade system and how it works. The current international trade framework is problematic because it is antiquated and has become too archaic to use as means of allowing countries to earn from trade whilst maintaining financial system stability.
If governments where to use an Electronic Clearing House (ECH) for managing the movement of products and money between countries then each and every country that is party to the ECH process would automatically have balanced trade. An ECH system allows governments to settle trade transactions between exporters and does away with some of the more harmful aspects of international trade. 

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