Reserve Currency Status
Brainard’s speech didn’t address recent concerns regarding the reserve currency status concerns of the US dollar or China’s current lead in the CBDC race, which could advance its national interests. The reserve currency status is among others determined by the resilience of a country’s payment system, depth and trust in the well-functioning of the capital markets and exchanges, appeal to and innovation acumen of its tech industry and financial market infrastructure, international thought leadership, lead into climate change solutions and the global military might and power base, which reinforces adoption of a currency. (Customers pay for oil in the currency of the nation which offers regime protection at the oil fields. Asians and Europeans move every month out of their home currency in favor of the US Dollar to pay for their imported oil bill). Global adoption can also be ensured if censorship or control concerns, linked to the use of the CBDC, can be substantially mitigated.
Referring to innovation acumen and climate change solutions, could the central bank digital currency project incorporate scientific data observations regarding climate change triggering terrestrial and atmospheric trends? Could TRACE, a consortium tracking greenhouse gas emissions 24/7 by satellite, foster a balance between monetary policy and a thriving planet and be made part of this initiative? Could monetary policy be framed incorporating observations from those data trends, with support from climate scientists? Could digital currency be directed at ZIP code levels, impacted by climate change calamities? From a supervisory perspective, could solvency weightings for banks’ asset exposure be dynamically set as a function of the data observations and the remaining finite carbon budget? Could bank stress testing scenarios under CCAR (Comprehensive Capital Assessment and Review), undertaken to assess the banks’ adequacy of solvency levels, be articulated as an extended continuum of such climate change observations?
Innovative monetary design ingenuity linked to climate change solutions can only solidify the continued appeal in the US dollar as the global reserve currency.
The Current Five-Headed Crisis
The current crisis is five-headed in nature, characterized by a
- public health crisis, a
- financial crisis, a
- social justice crisis, a
- climate change crisis and a
- trust crisis in institutions and international trade.
Could a central bank digital crypto currency address each of the crisis challenges? How could financial inclusion offer a dent into the social injustice paradigm? How could distributed, decentralized and crypto-graphed data sharing enhance trust in institutions? How could the Central Bank consensus protocol be made more energy efficient than the private crypto-currency protocols? How could smart contract design introduce a central bank digital currency-based reward economy?
Instead of offering mere helicopter money, could compensation be offered in exchange for contributions to the regenerative (climate change) and caring economy (childcare and parental care at home)? How could blockchain supported supply chain data trace the global export and import flows in relationship to FX trades and exchange rates? How could market intervention and/or sustainable change to circular economic paradigms be steered on the back of those data?
Need For A New Anchor Currency
The debasing of currencies by the most important central banks ($6 Trillion of QE in the US alone), the arising currency tensions in the emerging markets (e.g. Lebanon, Turkey, South-Africa,….) and the COVID-19 default impact on total debt outstanding of $258 trillion per Q1 2020 will only accelerate the need and call for debt rescheduling and ensuing FX rate mechanism interventions. If gold is no longer an option, could a central bank issued stablecoin, finite in supply, become a store of value or new anchor currency to manage the restructurings and market support activities?
Brainard’s speech makes reference to a new initiative with the Bank of International Settlement’s Innovation Hub. This initiative could provide a useful avenue to design such Central Bank stablecoin.
The collateral base of the stablecoin could consist of a reserve of natural capital assets, consisting of
- 50% of land and forests,
- 35% In renewable energy initiatives, and
- 10% in the top 100 most compliant ESG companies and
- 5% in biotech research.
The collateral base would be managed dynamically, but would also benefit from monetary policy and prudential supervisory decisions aimed at regenerating the natural capital base on earth and replenishing its finite carbon reserve. The supply could be managed, within a range, as a function of the TRACE observations.
On the occasion of Bretton Woods II, the new Central Bank Stablecoin could be introduced and offered, akin to the gold standard, as a fixed rate against all other fiat currencies, including the US dollar.
Milton Friedman once observed, only a crisis – actual or perceived – produces real change. When that crisis occurs, the actions that are taken depend on the ideas that are lying around. Then, ideas once dismissed as unrealistic or impossible might just become inevitable.
Neil Shenvi gives a lecture on Social Justice, Critical Theory, and Christianity: Are They Compatible? at the Center for Faith and Culture. Dr. Neil Shenvi has a Ph.D. in Theoretical Chemistry from UC-Berkeley and an A.B. in Chemistry from Princeton. He homeschools his four children through Classical Conversations and can be found on Twitter at @NeilShenvi.
(RNS) — Is Martin Gugino an Antifa provocateur?
Or a beloved Catholic peace activist who was the victim of police brutality in Buffalo, New York?
A Tuesday morning (June 9) tweet from President Donald Trump suggested the former, drawing a wave of shock and outrage from friends of the 75-year-old activist who was shoved to the ground by Buffalo police during a protest last Thursday outside City Hall.
The incident, captured on video, went viral and has become symbolic of the kind of police brutality that has sparked calls for fundamental reforms to American policing. In the video, an officer is seen shoving Gugino, who falls to the sidewalk, hitting his head. As Gugino lies unmoving and bleeding, the officer who pushed him is seen hurrying away.
Gugino remains in the Erie County Medical Center in serious condition, though he is no longer in intensive care, a friend said.
Buffalo’s police commissioner suspended two Buffalo police officers involved in the incident without pay, prompting dozens of other officers to step down from the department’s crowd control unit in protest. On Saturday two of the officers were charged with felony assault.
The president referred to the conservative news site One America News Network in making his unfounded claim.
“Buffalo protester shoved by Police could be an ANTIFA provocateur,” Trump wrote. “75 year old Martin Gugino was pushed away after appearing to scan police communications in order to black out the equipment. @OANN I watched, he fell harder than was pushed. Was aiming scanner. Could be a set up?”
Friends of the retired computer scientist described Gugino as a devout Catholic and a graduate of Canisius High School, a private Jesuit school in Buffalo, who is a passionate advocate for multiple causes on behalf of the poor and disenfranchised. Gugino spent his retirement lending a hand to multiple causes, among them Black Lives Matter.
“Martin has a passion for social justice,” said Mark Colville, who runs Amistad Catholic Worker in New Haven, Connecticut, and has known Gugino for years. “When he sees wrong he wants to be involved in making it right.”
Colville said Gugino made multiple trips from his home in the Buffalo suburb of Amherst to New Haven — a six-and-a-half-hour drive — to help prepare and serve meals at Amistad, a house of hospitality that describes its mission as “follow(ing) Jesus in seeking justice for the poor.”
Gugino never wanted to draw attention to his work, Colville said. He’s a private person who lived alone. He cared for his mother until she died, and he recently lost his sister, too.
On Saturday, Colville drove up to Buffalo to see if he could visit his friend in the hospital. He was not allowed past the reception desk but instead did the next best thing. He went downtown to take Gugino’s place at a protest on the street where videos had captured police knocking Gugino to the ground while clearing protesters away from City Hall.
“ trump-twitter-outragous-martin-gugino,” Colville said. “He likes his privacy. He doesn’t make a spectacle of himself. He likes to show up and be present. He likes to be involved in these movements for justice. But he doesn’t do it in a self-promoting kind of way.”
The two have worked for years to advocate for the closing of Guantanamo Bay, the U.S. detention camp in Cuba where terrorism suspects could be detained without process.
Gugino is active in Witness Against Torture, an organization formed in 2005 to protest the treatment of detainees on the base. Each January, group members travel to Washington, D.C., to fast and hold vigil outside the Department of Justice.
Much of the work was done on behalf of Muslim prisoners, many of whom were picked up by the CIA and taken to Guantanamo after the 9/11 terrorist strikes.
“People, including Martin, made connections between their own faith and the faith of people detained because of their own faith,” said Matt Daloisio, a New York state public defender and one of the organizers of Witness Against Torture.
Daloisio and several others say they’ve been texting Gugino in the hospital and he’s been responding with emoji hearts rather than texts.
Guigino’s Twitter account and YouTube videos have been deactivated. He is represented by lawyer Kelly Zarcone, who said Tuesday: “We are at a loss to understand why the President of the United States would make such dark, dangerous, and untrue accusations against him.”
Democratic presidential candidate Joe Biden tweeted in response to Trump that “there’s no greater sin than the abuse of power,” and Biden mentioned that he, like Gugino, is a Catholic.
Tom Casey, a retired civil engineer from Buffalo and a local coordinator for Pax Christi, an international Catholic peace movement, said the idea that Gugino is a provocateur is ludicrous. Gugino was certainly opinionated, Casey said, but always respectful of others.
“I have never heard him use a vile or angry word against anybody and I spent a lot of time talking to him,” Casey said.
Gugino was also active on behalf of Black Lives Matter. After the 2014 killing of Tamir Rice, a 12-year-old African American boy who was shot by a police officer, Gugino traveled to Cleveland to meet with Rice’s parents. In 2016, Gugino participated in a protest in front of the Justice Department in which demonstrators called for murder charges against the officer who shot Rice.
Gugino’s presence at the Black Lives Matter protest last week was typical of his activism. He is also active with the Western New York Peace Center and PUSH Buffalo, a coalition working on affordable housing.
This fall, Jericho Road, a community health clinic in Buffalo, featured Gugino in its newsletter’s “donor spotlight.” Asked why he gives, Gugino wrote: “In the Sermon on the Mount, Jesus said to clothe the naked, shelter the homeless, feed the hungry, and give drink to the thirsty.”
“Martin is consistent,” said Mary Anne Grady Flores, an Ithaca New York Catholic Worker who participated with Gugino in multiple protests against Hancock Field Air Force Base’s use of remotely piloted drones to kill insurgents in Afghanistan and elsewhere. “He’s a gentle giant, who is so articulate, so thoughtful.”
In a Democratic debate last week, Vermont Sen. Bernie Sanders argued that to deal with the migration crisis at the U.S. southern border, “we’ve got to ask ourselves, ‘Why are people walking 2,000 miles to a strange country where they don’t know the language?’ ”
It’s a sad day when a septuagenarian U.S. senator can’t grasp the reason for Central American poverty.
The migrants were born in countries that lack rule of law, respect for private property, and economic freedom. The nations of the Northern Triangle—El Salvador, Guatemala and Honduras—instead have pursued Sanders-style social justice as a path to prosperity. It’s hardly a surprise their citizens enjoy neither.
Environmental mobs close down mining projects and chase away investors. Activists block roads to shake down the government; they invade farms and steal electricity with impunity. Well aware that upward economic mobility is nearly impossible, Central Americans vote with their feet.
The prospects for change aren’t promising. Ideas matter, and for generations the global left—mostly from Europe and the U.S.—has treated the region as its sandbox, where it goes to play with policies that don’t sell at home. Central America is macerated in the collectivist bunk of this elite, who promise utopia and deliver special-interest mercantilism and corrupt statism.
This is one reason Guatemalans were freaked out Friday when their Prensa Libre newspaper reported that Speaker Nancy Pelosi would lead a congressional delegation to Guatemala City this week “to meet with civil society, businessmen and other sectors.” Her office declined to comment for security reasons. But if she is going, it is worth asking why she would visit in the week before the Aug. 11 presidential runoff election.
The election is an important milestone in Guatemalan politics, and the deciding factor may be urban turnout. Despite a solid lead in a recent poll, center-right Vamos Party candidate Alejandro Giammattei isn’t a shoo-in. If voters in the big cities stay home, social democrat Sandra Torres of the National Unity of Hope Party could prevail.
Ms. Torres was first lady during the presidency of Alvaro Colom (2008-12) but divorced him in 2011 in an attempt to circumvent a constitutional prohibition on consecutively following a spouse into the executive office. The high court didn’t buy it, but she did make an unsuccessful run in 2015.
Ms. Torres is a left-wing populist. Her party, which is known as UNE, dominates rural and small-town Guatemala. Pocketbook issues are a priority in these parts and machine politics are the name of the game. By promising things like child and elder subsidies and tin roofs, UNE maintains a solid base.
Mr. Giammattei is by no means the first choice of Guatemalan conservatives. That designation goes to Zury Ríos, daughter of the late Gen. Efraín Ríos Montt, who held the presidency for less than 17 months after a 1982 coup. Ms. Ríos is a popular politician and made her own run for the presidency in 2015. This time around, the constitutional court blocked her candidacy because of her father’s role as a military dictator.
Yet Mr. Giammattei ran the prison system and pledges a tough-on-crime agenda. He says he will bring investment to the country. With UNE controlling Congress and much of the judicial branch, voters may prefer an executive check on social-democrat power.
Both candidates oppose the immigration-cooperation framework agreement that President Jimmy Morales signed with President Trump in July. The accord is short on detail, but as protocols are added, the expectation is that it will oblige Salvadorans and Hondurans who try to move north to the U.S. to apply for asylum in Guatemala. Speculation was running wild last week that Mrs. Pelosi’s visit was partly aimed at derailing the agreement for domestic American political reasons.
Both candidates promise to fight corruption, but voter apathy implies a high degree of public skepticism. The United Nations International Commission Against Impunity in Guatemala—a k a CICIG—was supposed to bring about the rule of law. But somewhere along the way the left realized it could use CICIG, accountable to no one, to grab power without the fuss of elections. A judicial reign of terror, designed to silence opposition, ended only in January, when President Morales kicked CICIG out of the country.
The media ran news stories for nearly a decade that read like CICIG press releases. But in March the Guatemalan attorney general petitioned the court to arrest CICIG’s closet Guatemalan collaborator, former Attorney General Thelma Aldana, on corruption charges. As the country’s top prosecutor, she ought to have protected civil liberties. Instead she permitted the commission’s abuses while it refused calls to investigate her. Guatemalans are still trying to recover confidence in their justice system.
Ms. Aldana, who had presidential aspirations, says she is being politically persecuted. But she has fled the country rather than face trial. If voters are uninspired by their political class, and afraid of help from Democrats, who could blame them?
In the age of A.O.C., the lesson must be learned again.
Conspicuous by its absence in much of the mainstream news coverage of Venezuela’s political crisis is the word “socialism.” Yes, every sensible observer agrees that Latin America’s once-richest country, sitting atop the world’s largest proven oil reserves, is an economic basket case, a humanitarian disaster, and a dictatorship whose demise cannot come soon enough.
But … socialist? Perish the thought.
Or so goes a line of argument that insists socialism’s good name shouldn’t be tarred by the results of experience. On Venezuela, what you’re likelier to read is that the crisis is the product of corruption, cronyism, populism, authoritarianism, resource-dependency, U.S. sanctions and trickery, even the residues of capitalism itself. Just don’t mention the S-word because, you know, it’s working really well in Denmark.
Curiously, that’s not how the Venezuelan regime’s admirers used to speak of “21st century socialism,” as it was dubbed by Hugo Chávez. The late Venezuelan president, said Britain’s Jeremy Corbyn, “showed us there is a different and a better way of doing things. It’s called socialism, it’s called social justice, and it’s something that Venezuela has made a big step toward.” Noam Chomsky was similarly enthusiastic when he praised Chávez in 2009. “What’s so exciting about at last visiting Venezuela,” the linguist said, is that “I can see how a better world is being created and can speak to the person who’s inspired it.”
,” as it was dubbed by Hugo Chávez. The late Venezuelan president, said Britain’s Jeremy Corbyn, “showed us there is a different and a better way of doing things. It’s called socialism, it’s called social justice, and it’s something that Venezuela has made a big step toward.” Noam Chomsky was similarly enthusiastic when he praised Chávez in 2009. “What’s so exciting about at last visiting Venezuela,” the linguist said, is that “I can see how a better world is being created and can speak to the person who’s inspired it.”
.. Chomsky walked back some of his praise as Venezuela became more overtly dictatorial, but others on the left weren’t as squeamish. In a lengthy obituary in The Nation, New York University professor Greg Grandin opined, “the biggest problem Venezuela faced during his rule was not that Chávez was authoritarian but that he wasn’t authoritarian enough.”
At least Grandin could implicitly concede that socialism ultimately requires coercion to achieve its political aims; otherwise, it’s human nature for people to find loopholes and workarounds to keep as much of their property as they can.
That’s more than can be said for some of Chávez’s erstwhile defenders, who would prefer to forget just how closely Venezuela followed the orthodox socialist script.
- Government spending on social programs? Check: From 2000 to 2013, spending rose to 40 percent of G.D.P., from 28 percent.
- Raising the minimum wage? Check. Nicolás Maduro, the current president, raised it no fewer than six times last year (though it makes no difference in the face of hyperinflation).
- An economy based on co-ops, not corporations? Check again. As Naomi Klein wrote in her fawning 2007 book, “The Shock Doctrine,” “Chávez has made the co-ops a top political priority … By 2006, there were roughly 100,000 cooperatives in the country, employing more than 700,000 workers.”
And, lest we forget, all of this was done as Chávez won one election after another during the oil-boom years. Indeed, one of the chief selling points of Chavismo to its Western fans wasn’t just that it was an example of socialism, but of democratic socialism, too.
Government overspending created catastrophic deficits when oil prices plummeted. Worker co-ops wound up in the hands of incompetent and corrupt political cronies. The government responded to its budgetary problems by printing money, leading to inflation. Inflation led to price controls, leading to shortages. Shortages led to protests, leading to repression and the destruction of democracy. Thence to widespread starvation, critical medical shortages, an explosion in crime, and a refugee crisis to rival Syria’s.
.. All of this used to be obvious enough, but in the age of Alexandria Ocasio-Cortez it has to be explained all over again. Why does socialism never work? Because, as Margaret Thatcher explained, “eventually you run out of other people’s money.”
.. Surely there’s a compound in Havana where that gang can live out their days without tyrannizing a nation.
Whether or not things change, he knows who he is.
He still has a sense of dignity and worth and he trusts that transformational change will come, though it may not happen in his lifetime.
Both the social justice movement and Trump arise out of idolatry.
The atheistic movements opened up a vacuum for other things, a type of politics.
People’s beliefs become more extreme when the move away from religion.
Religion is not the substance in the bowl. It is the bowl.
Contemplation is radical in that it goes to “the root” (radix) of all our problems. Contemplation is the heart of the matter because it changes consciousness and thus transforms how we enter into communion with God, with ourselves, with the moment. Without the contemplative mind, all our talk about and action for social change and justice can actually do more harm than good. In working for social change, we all get angry, disillusioned, alienated, and hurt. We make mistakes, we don’t agree with others, we discover that change takes longer than we’d hoped and the solution isn’t as simple as we’d imagined. I have seen far too many give up, grow bitter, or just nurse a quiet cynicism when they can’t hold disappointment with a contemplative, nondual consciousness. Action needs to be accompanied by contemplation for us to stay on the journey for the long haul. Otherwise, we’re just constantly searching for victims and perpetrators, and eventually we start playing the victim or perpetrator ourselves.
Contemplation is not a new idea; it’s one of the treasures of our Christian tradition. Jesus himself modeled this way of praying and being. It was taught systematically in monasteries for centuries, for example, by Francisco de Osuna (1492–1540), a Spanish Franciscan friar, whose writing liberated Teresa of Ávila. The desert mothers and fathers in Egypt, Syria, Palestine, and Cappadocia understood and cultivated it for centuries. While systematic contemplative teaching was largely lost for the last 500 years, today interfaith and inter-denominational interest in contemplation continues to grow all over the world.
In 2012, Pope Benedict XVI invited Rowan Williams, then Archbishop of Canterbury and leader of the Anglican Church in England, to address the Synod of Catholic Bishops. Williams emphasized the foundational and radical importance of contemplation:…