Standard Returns: New Sustainable Currency Geared to Stabilize World Economy
Nov 26, 2013 12:44PM
The Terra, an Internet-based trade reference currency (TRC), has been launched as a global complementary form of money to provide an inflation-resistant international value standard, stabilize the worldwide business cycle and realign stockholders’ interests with long-term sustainability.
From a legal viewpoint, the Terra is standardized “countertrade” (international barter), which is routinely used for more than $1 trillion worth of transactions each year. Countertrade legislation already exists in about 200 countries, including all the major trading nations, so introducing the Terra does not require new intergovernmental agreements.
Financial and currency expert Bernard Lietaer, one of the key architects of the European Currency Unit, the convergence mechanism that led to the Euro, posits the Terra as the first time since gold standard days that such a robust, inflation-resistant international base value has been available. He says, “This supranational complementary currency is uniquely designed, unlike national currencies, to provide a stable international mechanism for contractual and payment purposes worldwide. This mechanism would automatically work to reverse the boom and busts of the business cycle and stabilize the economy by providing more cash during downturns and cooling off inflationary pressures in the peak of an upturn.”
Perhaps most importantly, it is positioned to resolve the current conflict between short-term financial interest and long-term sustainability. The Terra works in parallel with national currencies.