Reflecting on yesterday’s blog, “Saving the world from starvation” then, if there were another crisis of 2008 proportions — or, more likely, more catastrophic — the initial reaction of governments may well be the same as before. They would need to ensure that the banks had enough money to supply the cash machines. But would they be able to move further and institute another wave of quantitative easing (QE)?
And would this be even half-way acceptable to businesses and people all round the world? After all, if QE hasn’t done anything constructive to repair the world monetary system in the last seven years, what guarantee would there be that another bout of QE would be the best way to go forward? None at all. There’s be eruptions from all round the world from business, the media and people for something really constructive to be done next time.
And the most constructive solution of all would be a new gold-backed digital currency. It could come into operation immediately once a handful of multinationals agree to use the new currency between them and to insist that their suppliers and customers use it also. Once initiated, it would mean that businesses and individuals with any cash at all would buy into the new currency as soon as possible before the price of gold rises too quickly. Governments with no cash — most of them — would have to go onto debt with a world gold depository — which, later, oould become the central bank of all the world banks.
The Big Six of the IT world — Alphabet (the new name for Google), Alibaba, Amazon, Apple, Facebook and Microsoft — with considerable expertise in various forms of secure digital payment already, could supply the software within days. They would do so not only because it would be a matter of life and death in keeping the bulk of the world’s economy going but literally so in ensuring the continuity of the food chain.
What has been described above is not business taking over governmental functions but of business regaining its original role in inventing money in the first place — around 900BC in Lydia and China/