For CBDCs or Digital Currencies to function globally, a Global Clearing System must first be set up. This will require agreement, co-operation and information sharing between governments. Webtel.mobi describes why high debt loads of countries make this unlikely
Easy Credit in large quantities has resulted in enormous National Debts
Easy availability of credit in some economies has led to wide debt and economic disparities between groups of countries. This has resulted in the divergence of their future growth potential, and has created geopolitical rivalries internationally
ST PETER PORT, Guernsey and NEW YORK, Oct. 20, 2021 (GLOBE NEWSWIRE) — In order for a proposed CBDC or other Global Digital Currency to function as a globally acceptable medium of exchange – as opposed to being just an internal mechanism within a country – there will first have to be global agreement among countries on principles to govern this new form of money. In particular, there will have to be confidence among all participants relating to the solvency of all currencies.
Without this, a Global Clearing System with all major countries’ participation will not be able to be set up. Without a Global Clearing System – which must precede global CBDCs or Global Digital Currencies – no international global CBDC or Global Digital Currency issued by countries can, or will, ever come into being.
However, there are currently rival power groupings of major countries internationally, and these rival power groups have very divergent geopolitical views and aims. One of the primary drivers of these divergent geopolitical aims and views is economic rivalry.
The rivalry exists primarily between the “old” economies of the Group of Seven or “G7” countries (the United States, Canada, the United Kingdom, Germany, France, Italy, and Japan), and the “new” economies of the “BRIC” countries (Brazil, Russia, India, and China). The reasons for these rivalries existing can be clearly seen in the snapshot economic comparison below:
- G7: Population = +/- 775 Million
- BRIC: Population = +/- 3.196 Billion
- G7: Total Gross Domestic Product (GDP) = USD 43.996 Trillion
- BRIC: Total Gross Domestic Product (GDP) = USD 44.898 Trillion
- G7: Total National Debt = USD 59.480 Trillion
- BRIC: Total National Debt = USD 13.4 Trillion
- G7: Percentage of Global Population = +/- 10%
- BRIC: Percentage of Global Population = +/- 41%
- G7: Percentage of Global Debt = +/- 73%
- BRIC: Percentage of Global Debt = +/- 16%
- G7: Average National Debt of every G7 countries’ citizen = USD 76 748.00
- BRIC: Average National Debt of every BRIC countries’ citizen = USD 4 192.00
(National Debt is incurred by governments on behalf of citizens, and citizens have to repay it – in tax)
This situation is further compounded if one examines some key data, as illustrated in the snapshot below:
- Agriculture: G7 – Declining / BRIC – Expanding
- Industry / Manufacturing: G7 – Declining / BRIC – Expanding
- Oil and Gas: G7 – all Net Importers / BRIC: Russia is a Net Exporter
- Financial Services: G7 – Declining (slowly but steadily) / BRIC – Expanding (slowly but steadily)
- Poverty Levels: G7 – Increasing (slowly but steadily) / BRIC – Decreasing (slowly but steadily)
- Real GDP: Only 3 of 7 in the top 8 internationally / All 4 in the top 8 internationally
(See the “Resources” section of this article for details on Real GDP and national Debt)
The stark economic differences between these two groupings of major powers and their divergent potential growth trajectories already create international instability in even arms-length relations between them – as evidenced by their constant vetoing of one another’s motions at the United Nations Security Council.
Consequently, the likelihood for agreement between them on a matter as crucial as their own economies – and information sharing in respect of matters to do with their own economies and currencies (as is a prerequisite for setting up a new Global Clearing System) would be very slim indeed. Without the Global Clearing System, it is not possible to ever have globally exchangeable CBDCs or Global Digital Currencies (as currently envisaged).
However, there was – and is – a solution that would facilitate a fully functional Global CBDC-equivalent and Global Digital Currency despite divergent geopolitical rivalries between countries and power blocs.
At the Bretton Woods Conference held towards the end of the Second World War, the English Economist John Maynard Keynes proposed the creation of an “International Clearing Union”. This would be a neutral Global Clearing System – free of political and geopolitical baggage – through which the countries of the world would conduct their trade. It would use as its medium of exchange an instrument that he termed the “Bancor”. The Bancor would be a form of substitute currency that would be valid and convertible.
This system of International Clearing Union and Bancor was not adopted.
Had it been, the current overload of debt in national economies and the global economy may not have been able to arise. This is because this system makes fiscal irresponsibility much more difficult to obscure, and it promotes (and rewards) balance of trade and fiscal discipline – while at the same time making it difficult for opaque financial structuring to take place unseen.
It is upon this International Clearing Union with Bancor system that the Webtel.mobi Global Clearing System with TUV is based.
Indeed, it is largely an upgraded replica of the structure that Keynes proposed – just significantly upgraded due to the possibilities that 21st Century Artificial Intelligence capacities and the globalization of the world in the internet age have provided.
Webtel.mobi’s Global Clearing System has within it all functionality, processes and facilities that are required for – and that exist in – a Global Financial System. It enables and facilitates every type of transaction that is possible – on a global basis.
Moreover, Webtel.mobi – due to the capacities and global reach of its system – adopts a completely neutral stance towards all entities worldwide. This is to act in a capacity as a Supranational Entity, allowing for the free flow of trade and transactions across its system without fear or favor (subject to internationally agreed laws, conventions, and restrictions) – as must be the case in respect of global money flow / global economic traffic.
Moreover, Webtel.mobi’s TUV Digital Currency fulfills the same role as the proposed “Bancor” in its Global Clearing System. It facilitates conversion of any country’s currency into a globally valid, recognizable, acceptable, transferable, exchangeable, convertible, FX convertible and redeemable store of value and medium of exchange. It does this without interfering with any country’s or Central Bank’s Monetary Policy or Currency Sovereignty.
The only primary ways that Webtel.mobi’s TUV differs from Keynes’s Bancor (other than that the TUV is Digital in format) are as follow:
- A TUV does not need to be acquired by gold. It can be acquired by any currency, and its value will be denominated in that currency – with the currency being held in a regulated bank account to act as security and a guarantee of the TUV’s value*
- The funds acting as security and guarantee for the TUV can be redeemed for the TUV on demand.
- Given the democratization of the world over the past 70 years, TUVs are available not just to governments worldwide, but also directly to people worldwide.
* Note: The “Secured TUV” – already completed – will be secured by physical gold
Webtel.mobi’s Global Clearing System and TUV Digital Currency were, moreover, tested in full worldwide operations for nine years with its Platform 1 to refine their working and viability to fulfill their roles worldwide, in a secure manner. Thereafter, Webtel.mobi rebuilt its system’s Platform 2 over three years to incorporate all the lessons learned in those nine years of full operation, and complete a refined and fit-for-purpose system.
After the completion of Platform 2, Webtel.mobi granted access to it, to the Levy Economics Institute – one of the world’s foremost economics research organizations, and among the most authoritative world organizations in respect of the policies of John Maynard Keynes.
The result of the year-long review of the Webtel.mobi Global Clearing System and TUV Digital Currency were that the Head of Research at the Levy Economics Institute – Professor Jan Kregel – issued five research papers on the system. One was entitled “Keynes’s Clearing Union is Alive and Well and Living in your Mobile Phone”, and another “Another Bretton Woods Reform Moment: Let us Look Seriously at the Clearing Union”. These papers illustrate what the Webtel.mobi System and TUV are, and what their capacities are (links to these research papers are in the “Resources” section of this article).
The Webtel.mobi Global Clearing System and TUV cannot cure the debt problems of the developed world. They can, however, mitigate the future rise of debt to such levels and reform aspects of the current Global Financial System.
More importantly, while doing so – or whether or not it does so (because it will be up to individual governments to choose to use it or not), it will – and does – assist ordinary people worldwide. It does this by providing them with a safer, more secure, instant, multicurrency and zero cost global digital currency and clearing system, which enables them to save exponential amounts of money and time, and also provides a hedge for them against inflation and their own currencies’ potential depreciation.
Resources:
Media Contact:
Nick Lambert: wm@thoburns.com
International Clearing Union:
https://en.wikipedia.org/wiki/International_Clearing_Union
Bancor:
https://en.wikipedia.org/wiki/Bancor
Research Reports on the Capacities of the WM System:
Addition Research Papers on Webtel.mobi’s Global Clearing System and TUV:
https://webtel.mobi/pc/info/research/
Video on the Capacities of the WM System:
https://youtu.be/XYBrCikUhn8
Characteristics of WM’s TUV Digital Currency:
https://webtel.mobi/info/tuv-characteristics
WM’s urls:
https://webtel.mobi/pc (Tablets / Laptops / Desktops)
https://webtel.mobi (Smart Phones)
https://webtel.mobi/wap (Pre-Smart Mobile Phones)
List of Countries by Real GDP (aka PPP GDP):
https://en.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP)
World Debt Clocks:
https://worlddebtclocks.com/
https://usdebtclock.org/world-debt-clock.html
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/0358b9a0-7597-433a-a2ac-517b2eba7dc5
The photo is also available at Newscom, www.newscom.com, and via AP PhotoExpress.
