TOPICS and SUBCOMMITTEES to discuss them

[HIH Diga Makonnen IV]

Sir Iain, could you make a thread exclusively for the discussion of currency exchange so that we could have those that are interested in this topic, focus on this one subject?

Imperial Ras Diga Makonnen IV Co-Regent and Imperial Ras of Attera

[Trevon Andarosel]

i've another topic that could be discussed in a later stage.



what about a linkeage between the micronational and the macronational economies/



i already heard some remarks about link to the gold or dollar course, so it's probably a good point for discussion.



trevon.

The storyteller of Ex, Umbagollah


Ilotim ilo arelisin il parduvile arelis te arelisin
The truth is just too true to be true for everyone

[afsaridris]

Dear Hon. Delegates,

    As pointed out earlier, to form an individual urrency for each state is rather annoying and cost eating. Should we print our money, no one would want to appreciate it. Counter-feiting is something hard to avoid.

     What I suggest is that we create a "central" bank where we use credits instead. The bank will keep a record of transactions individually for each state. This way, payments will easily be made. To "keep" money in that bank, we buy the credits at an agreed rate per unit or so and a weekly reminder will tell us how much we've got. The Banker must be someone trustfull, honest ect.

      Next. InterState trade. If a trade should happen between states, there is no assurance that duties and taxes will not be imposed. It is rather burdening. How are we going to trade physical goods? In the real economy, no country is stupid enpugh to buy goods with it's money. They do it by companies. How are we going to have a registared company in our states?

      Even so, we must remember that we are non-profit organizations and are not excluded from the Law of taxtaion of our various countries.

Thank you.



Tk. Afsaruddin  

[Trevon Andarosel]

There is one thing you have to overcome before you can have an intermicronational currency, which is the nationalistic pride of the various micronations.



As long as you keep intermicronational trade in virtual money, no government can tax it, just as they don't tax Monopoly transactions.



Trevon Andarosel.

The storyteller of Ex, Umbagollah


Ilotim ilo arelisin il parduvile arelis te arelisin
The truth is just too true to be true for everyone

[KISEENIA]

I have more things to talk about:



I) Topics and commitees:

        Yes, the commitees are good, unless they degenerate in other laizy gatherigns of people talking about everything else thant they should.

        Topics proposed: - industry;

                                - resources;

                                - backing values [see the continuation]



II) Currency:



I think we could addopt the complicated system of a currency based on multiple economic factors as growth, population, production, etc. This, in my oppinion, would be very complicated, as we might get stuck in the large differences between micronational economies.



We could also addopt the "backing" system, one that was used for centuries, and I think it is the most reliable. What I mean is that each micronation could stock in its Central Bank (or any other likewise institution) a real resource (e.g. gold, dollars, etc.). After this, they could issue money, that would be backed by something. That is soewhat exactly what the people with the property made. They backed their money with an "untouchable" value, stored somewhere.

I don't think that how much money we issue should be a problem. For example, we could issue 1000000 Mikei (that's the Kiseean coin), and so have 2000000 $ in our bank (that's the official exchange rate). But we could also (if we were mad), issue 1000000 Mikei and have only 100 $ or 10$ in our deposit. That would mean that an A$ would be for us 15000 Mikei.

Of course, we don't issue so much money, trying to keep our coins constantly backed by real values.



The general idea is that the exchange rate could be easily established by a Central Commitee, by dividing the deposits made by each micronation to the number of denominations that it issues, and then, having an unitary measure, to calculate the rates between the coins.



Of course, this deposits won't have to be kept by the Commite; it will only recieve the confirmation of the existance of this deposits, issued by a credible authority (e.g. a macronational bank).



III) Fictious economy:



Though I think that a real system would be great, we have to accept that it is very hard to extablish a real economy based on some type of production.

So, I would agree with a fictious, more complex, economic system.  

[Trevon Andarosel]

Ha, I'm here again! Sorry for my absence, but I'm afraid it will occur more frequently. I got involved in too many things...



On with the discussion: I wonder where macro-countries got their gold or foreign currency from.



Trevon.

The storyteller of Ex, Umbagollah


Ilotim ilo arelisin il parduvile arelis te arelisin
The truth is just too true to be true for everyone

[Mercurivs]

Many macro-currencies are currently fiat ones, and are therefore backed by thin air (ie. debt created by banks lending money).