Transcript Document 464353

Monetary governance at Rio
+20
Frans C. Verhagen, M.Div., M.I.A.,
Ph.D., developer of the Tierra Fee
and Dividend System
December 10, 2010,
Cancun UNFCCC Luna
room at Moon Palace
Global Monetary Governance
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Overview
Welcome and introduction
Role of international monetary system
Monetary reform versus transformation
The components of the TFD
Carbon-based monetary system
Fee and Dividend versus cap and trade
Activist government
The TFD and Cancun
The TFD and Rio+20
General Assembly resolution
Monetary Agenda for Climate Action
Conclusion
December 10, 2010,
Cancun UNFCCC Luna
room at Moon Palace
Global Monetary Governance
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Role of international monetary
System (IMS)
Works like a glue, binding together
monetary, financial, monetary and
commercial systems
Works like a lubricant
Functions as a linchpin
IMS is heavily underemphasized: 1%
of economists are monetary
economists
December 10, 2010,
Cancun UNFCCC Luna
room at Moon Palace
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Monetary reform versus
Transformation
The dysfunctionality and criminality (Robert
Mundell) of the international monetary
system is recognized
Reforms: non-national reserve currencies
(Stiglitz Commission); greater use of SDRs
Transformation: going beyond the present
form by return to a monetary standard,
either a gold or carbon standard
December 10, 2010,
Cancun UNFCCC Luna
room at Moon Palace
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The components of the TFD-1
Transformed IMS because of the
introduction of a carbon standard
Unit of account is the Tierra
National currencies become convertible and the
costly global reserve system can be abolished;
nations can also decide to introduce the Tierra
world currency based upon the standard
Balance of payments include carbon accounts
which have to be balanced
The global central bank administers, monitors,
regulates and issues liquidity by circulating it
directly into economies; banks become utilities
December 10, 2010,
Cancun UNFCCC Luna
room at Moon Palace
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The components of the TFD-2
The Fee and Dividend (FD) carbon
reduction method selected from
among about half dozen other
methods
The FD method is faster and fairer than
cap and trade
It is like a carbon tax, but independent
from government’s fiscal policies
Major proponent: Jim Hansen in his
book Storms of My Grandchildren
December 10, 2010,
Cancun UNFCCC Luna
room at Moon Palace
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The components of the TFD-3
Activist governments
Money creation system is reclaimed
from privately-owned banking systems
and placed solely in the public sector:
NEF in the UK, Ellen Brown in the USA
In a globalized and financialized world
democracy is to be strengthened and
transnational corporations, particularly
FIRE corporations, are to be regulated.
December 10, 2010,
Cancun UNFCCC Luna
room at Moon Palace
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The TFD and Cancun
Maurice Strong: TFD is “an innovative
proposal….seems to be very promising in light of
the stalemate of the Kyoto prospects.” October 18,
2010 email
Raised its profile during side events by raising
questions about the need to considering the
monetary dimension, particularly in respect to the
creation of new monies of the global central bank.
See Declaration of November 24,press release of
December 8, and media advisory of December 9;
internet listings of yesterday’s interview by the
Climate Change Studio and Press conference in
Desierto in Cancun messe.
December 10, 2010,
Cancun UNFCCC Luna
room at Moon Palace
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The strategy for the TFD and the
Rio+20- 1
Objective: Include Monetary
governance as part of financial and
economic governance theme. Cf Prep
meeting of Stakeholder Forum in May
2010 in NYCity
TFD is proposed as a global
governance system that integrates
monetary, climate and development
challenges
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Cancun UNFCCC Luna
room at Moon Palace
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The strategy for the TFD and
Rio+20 -2
UNGA Resolution to establish a UN
Commission on Monetary Transformation
consisting of experts in climate,
development and monetary issues. It has
to develop a Monetary Agenda for Climate
Action to be submitted to COP 17 and with
its recommendations to the Rio conference
in 2012.
National TFD working groups engaged in
research, education and action, particularly
the endorsement of their government of the
UN Monetary Commission.
December 10, 2010,
Cancun UNFCCC Luna
room at Moon Palace
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Conclusion
Questions or Comments? Please, use microphone because
the press conference is being streamed
For further information, consult www.timun.net and pick up
the three handouts at the back: a media advisory, a press
release and a Declaration. Summary of the TFD can be
found in the article at the Yale/UNITAR conference at
http://conference.unitar.org/yale/environmentsustainable-development and in greater detail in my
forthcoming book THE TIERRA FEE AND DIVIDEND
SYSTEM: Using a transformed international monetary
system to combat climate change by advancing low carbon
and climate resilient development.
If you are in a hurry: leave your card and the basic
information about the TFD will be sent to you after the
conference.
December 10, 2010,
Cancun UNFCCC Luna
room at Moon Palace
“Without vision, people perish.”
Proverbs 28:19
Global Monetary Governance
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