Selling out our sovereignty

Rachman quoted Australian historian Geoffrey Blainey: "For the first time in human history, world government of some sort is now possible." Blainey forecasts its establishment as some time in the next 200 years. I think it could arrive much sooner.

The European Union might be Barack Obama's model, as could the United Nations. In nominating his top campaign aide, Susan Rice, to be America's UN ambassador, Obama also announced his intention to raise the post to cabinet rank. In his book, The Audacity of Hope, Obama wrote, "When the world's sole superpower willingly restrains its power and abides by internationally agreed-upon standards of conduct, it sends a message that these rules are worth following."

In fact, the message it sends is that the ideas and ideals that made America unique in the world are no longer worth following, because in a one-world government, the United States would inevitably have to compromise its beliefs, laws, faith, and everything else that makes it unique. European and Third World leaders would effectively be running the show. Barack Obama was elected president of the United States, not president of a world order, or worse, one of many equals among one of many nations that are nothing special.

November 2, 2001: Landmark UNESCO Universal Declaration on Cultural Diversity Adopted UNESCO's Universal Declaration on Cultural Diversity is adopted at its 31st General Conference, the international agency's governing body, in Paris, France. It is the highlight of the first ministerial-level meeting held by the international body after 9/11. The landmark international instrument brings cultural diversity to the unprecedented level of being defined "the common heritage of humanity" and deemed "as necessary for humankind as biodiversity is for nature." In a statement marking the adoption, UNESCO Director General Koïchiro Matsuura says the declaration is "an opportunity for states to reaffirm their conviction that intercultural dialogue is the best guarantee of peace and to reject outright the theory of the inevitable clash of cultures and civilizations." Matsuura adds that the declaration "can be an outstanding tool for development, capable of humanizing globalization." The declaration is adopted just less than a year after "preliminary items" for a draft declaration on cultural diversity were first submitted at the second round table of culture ministers held on December 11-12, 2000 in Paris, France. The "preliminary items" were proposed alongside the presentation by a UNESCO Experts Committee of its conclusions on "strengthening UNESCO's role in promoting cultural diversity in the context of globalization." [UNESCO, 11/2001]

A United Nations panel weighed into the dollar reserve currency debate, arguing for a new system of soft pegs to correct severe deficits in debtor nations like the U.S. and surpluses in countries like China.

The report from the United Nations conference on Trade and Development, issued on Monday, said the world economy would be better off with a system where governments intervene when necessary to either defend or depress their own currencies.

"A viable solution to the exchange-rate problem would be a system of managed flexible exchange rates targeting a rate that is consistent with a sustainable current-account position, which is preferable to any 'corner solution.' But since the exchange rate is a variable that involves more than one currency, there is a much better chance of achieving a stable pattern of exchange rates in a multilaterally agreed framework for exchange-rate management," said the U.N. body.

The role of the dollar reserve's status has been criticized of late, notably by Russia and China, which have called for the International Monetary Fund's special drawing rights to be used instead, a proposal that many see as impractical given the lack of availability or purchase power outside of settling international obligations.

The U.N. sees the impracticalities of the SDRs but also highlighted problems with the current system.

"An economy whose currency is used as a reserve currency is not under the same obligation as others to make the necessary macroeconomic or exchange-rate adjustments for avoiding continuing current account deficits. Thus, the dominance of the dollar as the main means of international payments also played an important role in the build-up of the global imbalances in the run-up to the financial crisis," the U.N. said.

"The United Nations called on Tuesday for a new global reserve currency to end dollar supremacy which has allowed the United States the "privilege" of building a huge trade deficit.
"Important progress in managing imbalances can be made by reducing the reserve currency country?s 'privilege' to run external deficits in order to provide international liquidity," UN undersecretary-general for economic and social affairs, Sha Zukang, said.

Speaking at the annual meetings of the International Monetary Fund and World Bank in Istanbul, he said: "It is timely to emphasise that such a system also creates a more equitable method of sharing the seigniorage derived from providing global liquidity."

He said: "Greater use of a truly global reserve currency, such as the IMF?s special drawing rights (SDRs), enables the seigniorage gained to be deployed for development purposes," he said.

The SDRs are the asset used in IMF transactions and are based on a basket of four currencies -- the dollar, euro, yen and pound -- which is calculated daily.

China had called in March for a new dominant world reserve currency instead of the dollar, in a system within the framework of the Washington-based IMF."