[Draft] On International Currency

[Excidium Planetis]

Got to thinking about this after the debate on digital currencies. I believe this will be much more tolerable to most nations.

On International Currency
A resolution to reduce barriers to free trade and commerce.

Category: Free Trade
Strength: Significant
Proposed by: Excidium Planetis

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Description: The General Assembly,

Wishing to promote trade and economic cooperation between the many World Assembly member nations, with the hope of promoting economic prosperity through trade;

Acknowledging that differing currencies, exchange rates, and fluctuating currency values constitute significant barriers to international commerce;

Noting that many nations have already circumvented these problems by adopting internationally recognized currencies, and have made trade significantly easier as a result;

Establishes an international currency, which shall be called the "International Standard", which is denoted as either IS or $, and instructs the WA General Accounting Office to regulate the value and distribution of International Standards, with the following conditions:

• The GAO must issue at least one million International Standards.
• The total value of International Standards cannot exceed half the annual total value of the General Fund.
• The GAO shall establish currency exchanges in member nations requesting them, and on WA property, which shall be the sole method of distribution of IS into circulation.

Mandates that the World Assembly, WA Headquarters, all WA holdings, and all commercial enterprises on WA property accept the International Standard as legal tender in all transactions, including national contributions to the General Fund;

Requires all WA Member nations to accept this currency as legal tender in all transactions in which the nation's own national currency is accepted;

Affirms the right of WA member nations to utilize their own national currencies, to regulate the value thereof, distribute such currencies as necessary, to set national monetary policy, and to adopt any other international currencies as they so desire;

Encourages nations to make their currencies mutually fully convertible, and to make information on exchange rates and values of their currency easily accessible to their citizens.

On International Currency
A resolution to reduce barriers to free trade and commerce.

Category: Free Trade
Strength: Significant
Proposed by: Excidium Planetis

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Description: The General Assembly,

Wishing to promote trade and economic cooperation between the many World Assembly member nations, with the hope of promoting economic prosperity through trade;

Acknowledging that differing currencies, exchange rates, and fluctuating currency values constitute significant barriers to international commerce;

Noting that many nations have already circumvented these problems by adopting internationally recognized currencies, and have made trade significantly easier as a result;

Establishes an international currency, which shall be called the "International Standard", which is denoted as either IS or $, and instructs the WA General Accounting Office to regulate the value and distribution of International Standards;

Requires all WA Member nations to accept this currency as legal tender in all transactions in which the nation's own national currency is accepted;

Affirms the right of WA member nations to utilize their own national currencies, to regulate the value thereof, distribute such currencies as necessary, and to adopt any other international currencies as they so desire.

On International Currency
A resolution to reduce barriers to free trade and commerce.

Category: Free Trade
Strength: Significant
Proposed by: Excidium Planetis

---

Description: The General Assembly,

Wishing to promote trade and economic cooperation between the many World Assembly member nations, with the hope of promoting economic prosperity through trade;

Acknowledging that differing currencies, exchange rates, and fluctuating currency values constitute significant barriers to international commerce;

Noting that many nations have already circumvented these problems by adopting internationally recognized currencies, and have made trade significantly easier as a result;

Establishes an international currency, which shall be called the "International Standard", which is denoted as either IS or $, and instructs the WA General Accounting Office to regulate the value and distribution of International Standards;

Requires all WA Member nations to accept this currency as legal tender in all transactions;

Affirms the right of WA member nations to utilize their own national currencies, to regulate the value thereof, distribute such currencies as necessary, and to adopt any other international currencies as they so desire.

Thoughts? Questions, Comments, Concerns?
Honestly, I am not sure about category and strength, but this seemed to fit best.

[Tinfect]

OOC:
Illegal, contradicts existing legislation.

Actually, can't find anything on that, although I do remember it being illegal for some reason. I'll look into it.

It's Game Mechanics, actually. I should probably start checking that rules thread more often.

[Normlpeople]

OOC: Illegal, metagaming. It was game mechanics actually. Cheerfully withdrawn.

[Excidium Planetis]

OOC:
Illegal, contradicts existing legislation.

Actually, can't find anything on that, although I do remember it being illegal for some reason. I'll look into it.

It's Game Mechanics, actually. I should probably start checking that rules thread more often.

Game Mechanics? It doesn't change any game mechanics at all. The resolution clearly maintains the rights of nations to use their own national currencies, and that would be the only thing it could possibly effect.

OOC: Illegal, metagaming.

How? Please explain how this resolution does anything outside of the GA.

[Vancouvia]

This currency would have absolutely no value to Vancouvians. We have no need to trade with any other nation who does not accept one of our two widely used currencies. This "legal tender" would go straight into the fire where it belongs, because that would be what it is worth to us.

[Tinfect]

Game Mechanics? It doesn't change any game mechanics at all. The resolution clearly maintains the rights of nations to use their own national currencies, and that would be the only thing it could possibly effect.

OOC:
Universal currencies are used as an example of a Game Mechanics Violation, not honestly sure why, but Word of Mod is usually right.

[Frisbeeteria]

Please explain how this resolution does anything outside of the GA.

I believe the expectation would be a standard for currency exchange, which the game would not provide. And without exchange rates, the whole concept is pretty much worthless.

[Imperium Anglorum]

'The Democratic Empire, unfortunately, with heavy hearts, must oppose this proposal from our friends and colleagues from Excidium Planetis. This proposal, even if it were not illegal, would divest the Democratic Empire from the ability to form entirely independent monetary policy, and thus, would prevent us from taking whatever monetary policy actions necessary in the case of an economic recession'. Parsons sighs and puts his hand out to shake EP's Ambassador's hand.

[The Two Jerseys]

We really don't foresee an international currency that does more than just serve as an index for currency conversion gaining any traction.

[Excidium Planetis]

Game Mechanics? It doesn't change any game mechanics at all. The resolution clearly maintains the rights of nations to use their own national currencies, and that would be the only thing it could possibly effect.

OOC:
Universal currencies are used as an example of a Game Mechanics Violation, not honestly sure why, but Word of Mod is usually right.

That it is, but I honestly don't see why. My proposal doesn't change the game mechanics at all.

Please explain how this resolution does anything outside of the GA.

I believe the expectation would be a standard for currency exchange, which the game would not provide. And without exchange rates, the whole concept is pretty much worthless.

NSD is already nearly universally accepted as the currency exchange standard (at least in GE&T), and it is more universal than this would be, since this applies only to WA nations. Besides, the proposal doesn't change Game Mechanics or force players to do anything... it doesn't force them to roleplay accepting IS anymore than "Ban on Child Labor" forces them to roleplay prostitution of minors as illegal. So if this neither violates Game Mechanics or Metagaming, I don't see why it would be illegal.

Although perhaps this should have come up in the Rules Consortium (it probably did).

Anyways, the value is from an IC perspective, easier trade through an international currency, and from an OOC perspective, an economic stat boost. Hardly "worthless", I'd say.

[Bananaistan]

We can only see this as some of form of imperialism or fascism or something like that. We refuse to cede control of our monetary policy to some unelected and unaccountable group of civil servants in the WA accounting office.

The proposal gives the power to set the value of the IS to the WA General Accounting Office. In effect this means that they would have to set an exchange rate between IS and the local currencies of all member states. Therefore the exchange rates between local currencies are locked in to a rate set by the WA General Accounting Office. The FX market and the floating exchange rate would be abolished and no country is left in control of their local currency. The WA General Accounting Office becomes a central bank to the whole WA.

Or it does none of this and everyone keeps their own currency and the value of that currency relative to IS fluctuates as the market dictates and IS remains an optional currency for people to use as they see fit, and businesses could use it as their functional currency. In which case there may well be a benefit to international trade but this will be offset by the cost to local business and government of being forced to accept two different currencies over the counter and the systems they will need to put in place to allow this.

If this is what the author wishes to achieve, it would be, in our opinion, necessary to remove the reference to the WA General Accounting Office setting the value of IS.

In either case Bananaistan will be opposed.

- Ambassador Ted Hornwood

OOC: I think the currency which I outline in my second paragraph would be illegal, if for no other reason than the rules specifically preclude universal currencies. I don’t think this is what you’re trying to achieve though?

The currency which is optional for businesses to use but mandatory for everyone to accept isn’t a terrible idea but it would be a huge imposition for everyone to have to accept it as legal tender. Business would have to keep two floats going. Till systems and accounting systems would need to be changed. Staff would have to be trained. I think it’s a bit of a can of worms. Therefore, my IC opposition.

[Povinksi]

Completely illegal. Opposed.

[Separatist Peoples]

Completely illegal. Opposed.

Bell rubs his temples. "No, as it's currently written, it's useless , but it's not illegal. Odin's Hairy Knuckles, are you even trying?"

[Wrapper]

Completely illegal. Opposed.

OOC: Not quite:

viewtopic.php?p=2653070#p2653070

[Wallenburg]

"Absolutely note!" gasps Rep. Trevanyika. "I mean, I suppose our government could set a ludicrous exchange rate--say, 6,000,000$ for every one CRU--but we'd really rather just avoid this problem."

[Excidium Planetis]

We can only see this as some of form of imperialism or fascism or something like that. We refuse to cede control of our monetary policy to some unelected and unaccountable group of civil servants in the WA accounting office.

The proposal gives the power to set the value of the IS to the WA General Accounting Office. In effect this means that they would have to set an exchange rate between IS and the local currencies of all member states. Therefore the exchange rates between local currencies are locked in to a rate set by the WA General Accounting Office. The FX market and the floating exchange rate would be abolished and no country is left in control of their local currency. The WA General Accounting Office becomes a central bank to the whole WA.

The value of the IS, not exchange rates, is set by the GAO. Therefore, from my limited understanding of currencies, if your national currency increases in value relative to the IS, the exchange rate will change.

Or it does none of this and everyone keeps their own currency and the value of that currency relative to IS fluctuates as the market dictates and IS remains an optional currency for people to use as they see fit, and businesses could use it as their functional currency. In which case there may well be a benefit to international trade but this will be offset by the cost to local business and government of being forced to accept two different currencies over the counter and the systems they will need to put in place to allow this.

If this is what the author wishes to achieve, it would be, in our opinion, necessary to remove the reference to the WA General Accounting Office setting the value of IS.

I don't see why removal of that clause is necessary for that paragraph to be true.

OOC: I think the currency which I outline in my second paragraph would be illegal, if for no other reason than the rules specifically preclude universal currencies. I don’t think this is what you’re trying to achieve though?

The currency which is optional for businesses to use but mandatory for everyone to accept isn’t a terrible idea but it would be a huge imposition for everyone to have to accept it as legal tender. Business would have to keep two floats going. Till systems and accounting systems would need to be changed. Staff would have to be trained. I think it’s a bit of a can of worms. Therefore, my IC opposition.

You bring up interesting points, but I don't know what such a changed resolution would accomplish... if the currency is optional, its use as an international currency is somewhat decreased.

[Bananaistan]

The value of the IS, not exchange rates, is set by the GAO. Therefore, from my limited understanding of currencies, if your national currency increases in value relative to the IS, the exchange rate will change.

I don't see why removal of that clause is necessary for that paragraph to be true.

You bring up interesting points, but I don't know what such a changed resolution would accomplish... if the currency is optional, its use as an international currency is somewhat decreased.

It would appear that we're leaving IC debate at the door here then???

What is the value of a currency only how much it can be bought and sold for in another currency? In the most simplest of terms, the value of anything is no more or less than what people are willing to pay for it.

My last OOC point is what I think that your proposal currently does once the value issue is sorted, IE here's an international currency that a nation must let people use if they want to and so must be run in tandem with whatever currency or currencies the nation already has. Even if it isn't what you want your proposal to do, I would think that it's the strongest possible stance that would be legal, and even then mandating that nations must facilitate people using the new international currency strays perilously close to it being a universal currency.

[John Turner]

Acknowledging that differing currencies, exchange rates, and fluctuating currency values constitute significant barriers to international commerce;

I guessing your delegation knows nothing of economics? Fluctuating currency values drive international commerce. If for instance The Federation's currency was valued at less than EP's you would no doubt wish to buy from us as you get better value on your dollar. In turn this creates employment within The Federation to produce those good to export to your nation, and vice versa.

So please tell me how that creates a significant barrier to international trade?

[Povinksi]

Completely illegal. Opposed.

Bell rubs his temples. "No, as it's currently written, it's useless , but it's not illegal. Odin's Hairy Knuckles, are you even trying?"

Establishes an international currency, which shall be called the "International Standard", which is denoted as either IS or $, and instructs the WA General Accounting Office to regulate the value and distribution of International Standards;

Requires all WA Member nations to accept this currency as legal tender in all transactions;

Illegal.

Affirms the right of WA member nations to utilize their own national currencies, to regulate the value thereof, distribute such currencies as necessary, and to adopt any other international currencies as they so desire.

Contradictory to your other two statements.

[Separatist Peoples]

Bell rubs his temples. "No, as it's currently written, it's useless , but it's not illegal. Odin's Hairy Knuckles, are you even trying?"

Establishes an international currency, which shall be called the "International Standard", which is denoted as either IS or $, and instructs the WA General Accounting Office to regulate the value and distribution of International Standards;

Requires all WA Member nations to accept this currency as legal tender in all transactions;

Illegal.

Affirms the right of WA member nations to utilize their own national currencies, to regulate the value thereof, distribute such currencies as necessary, and to adopt any other international currencies as they so desire.

Contradictory to your other two statements.

"That's not illegal, and it's perfectly valid. Nations can determine what they'd like to use, so long as the IS is accepted. The second clause is conditional on the first. Seriously, try. Please."

[Imperium Anglorum]

Acknowledging that differing currencies, exchange rates, and fluctuating currency values constitute significant barriers to international commerce;

I guessing your delegation knows nothing of economics? Fluctuating currency values drive international commerce. If for instance The Federation's currency was valued at less than EP's you would no doubt wish to buy from us as you get better value on your dollar. In turn this creates employment within The Federation to produce those good to export to your nation, and vice versa.

So please tell me how that creates a significant barrier to international trade?

I presume it would have to do with the transaction costs necessary to convert one currency to another currency.

Establishes an international currency, which shall be called the "International Standard", which is denoted as either IS or $, and instructs the WA General Accounting Office to regulate the value and distribution of International Standards; Requires all WA Member nations to accept this currency as legal tender in all transactions;

Illegal.

I can use big obnoxious text too!

[Povinksi]

How would we determine the value of the $?

[John Turner]

How would we determine the value of the $?

We wouldn't. The committee and the international economy would. Also how many times are you going to edit this post young one? You deleted the first one before I could quote it still trying to claim this was illegal. You then appeared to have changed your mind after putting on your reading glasses. You then edited this one claiming you were still opposed and doubted it would pass with all of the "capitalizts" out there. Now you are asking how we would determine a currency value?

I understand you are eager, but if you truly don't understand how thing work around here, stop posting until you do. All you are doing is flushing precious credibility down the shitter.

[Excidium Planetis]

Acknowledging that differing currencies, exchange rates, and fluctuating currency values constitute significant barriers to international commerce;

I guessing your delegation knows nothing of economics? Fluctuating currency values drive international commerce. If for instance The Federation's currency was valued at less than EP's you would no doubt wish to buy from us as you get better value on your dollar. In turn this creates employment within The Federation to produce those good to export to your nation, and vice versa.

So please tell me how that creates a significant barrier to international trade?

If that's the case, why stick with one national currency? Why not create 5, or even 10 national currencies, and you're economy will surely go through the roof?

Additionally, I might get a better value for my "dollar"... but I likely have less "dollars" than the average citizen of your nation, because my currency is valued higher. To be paid the same equivalent cash, they pay me less credits than in countries where 10 of their currency is equivalent to 1 of ours. Now, I might still make more than your nation's average citizen if my nation is simply richer than yours... but then, I would still be richer than you even if we were using the same currency, so really the higher value of my currency would make no real difference, just instead of making 100,000 Credits and paying you 10, I'd be making 1,000,000 Whatevers and paying you 100.

Now, one might say that the fluctuating value of our national currency might suddenly make me richer relative to you despite having the same cash I had before... but that will still happen with this resolution, since we can both keep our national currencies and determine monetary policy... we simply have to also accept IS, which our currencies can rise and fall in value in comparison to.

The barrier to international trade is the complication of needing to exchange currencies in every transaction (OOC: Good God, can you imagine what GE&T would look like without NSD? The math would be a nightmare...), and the fact that exchange rates usually take a bit off your money...

[Frisbeeteria]

Illegal.

Official Moderation Statement, but not a ruling:

Povinksi, please stop trying to point out illegalities in proposals. You're really bad at it, and it's starting to be more spam than argument.

Feel free to argue points, but don't say something is illegal for ... let's say about 5-6 months. By then maybe you'll actually have a sufficient grasp of the rules.