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54 - June 1984

Reform of the World Monetary System
and national sovereignty
On Friday, May 25, 1984, a mere rumor triggered a kind of panic in New York and London. This makes François Renard remark in "Le Monde"'s May 27th's issue that "any rumor heard in one spot of the globe travels over the world in a flash and that alarmed holders rush to withdraw their stocks safe, whether they be American, European, Asiatic or from the Middle East".

Rumor, financial storm, threat of a crash in the banking system, wild fluctuations, panic, loss of confidence create an uncontrollable situation : is this how the International Money System is run, on a "rational" basis ? And the people that try to suggest remedies are considered utopians by all the supposedly "realistic" experts who though, reveal themselves unable to watch over this Pandora's box. A situation responsible for the mad course that leads from depressions to wars, from unemployment to poverty.

1929, "Black Thursday" or 1984 "Dull Friday" both show how inadequate the means of the International Monetary System is for distributing the enormous riches turned out by modern industry.

Yet, before 1973, the starting point of today's depression, exactly on July 26, 1972, the International Monetary Fund Governors' Council stated :

"it is essential we would proceed on a reform of the International Money System". A committee of 20 people drafted a project which was never carried out and the whole business was sent over to an Interim Committee that does not do any better, as we can read in the October 27 1983 IMF bulletin that it is urgent to begin the Reform of the International Money System and then, in the April 30 1984 bulletin, the subject is dropped. So, for 12 years this urgent reform has not made one step forward. While, in 12 years there would have been plenty of time to operate, full time, for 2 or 3 years, an international commission of experts working on the data given by Tinbergen, Duboin, Pierre Mendès-France or Charles Warin. And, in a ten years' period, there would have been plenty of time to work things out.

Why so many lost years ? Robert Granet, the Directeur à la Direction Générale" for Foreign Services of the Banque de France, sketches an answer in the February 16 1984 report, "Towards an International Money System ?" : "Actually as long as human nature and the relationship between nations are what they are, taking into account the sacrifices and infringement of national sovereignties an effective reform of the International Money System would imply, we have to recognize that a complete overhauling of the system will only be undertaken if we are compelled, coerced into doing it. As it has already been said before, a return to a secure situation in monetary matters, probably and regretfully means new ordeals".

Will this "Dull Friday" open the eyes of political leaders of every State as it shows them that the indispensable reform of the world monetary system means tackling a reform of unconditional national sovereignty ?

AMIP - Mundialist News Agency

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