WORLDEX & GLOMONEY

Warner: - Somehow, we are not getting out of this global recession, despite bringing in some new financial policies. The global recession started with the money-laundering case in USA. The economy was just about to recover, but, alas, the bubble burst of Dubai real estate sector came into the picture, followed by Greece, which displayed its real financial skeleton. As a net result, the stock exchanges throughout the world are dipping into the red sea.

Arindam: - Well, there are surely some green islands here and there in between that red sea. The biggest problem is that all the economies are dependent on other economies to prosper. No one is a self-sufficient economy.

Susan: - God has distributed natural resources and human resources in all parts of the world in such a calculative manner that no country can prosper by remaining isolated. Therefore, if we want to really come out of this global recession, then we should increase co-operation among others in terms of amending or adopting strict, uniform and universal financial policies.

Chang: - Are we really concerned about the problems that lies in the basic roots of the World Financial system? Whenever there is some financial crisis in a nation, the President or Prime Minister of that nation declares the stimulus package. If a plant has been attacked by some serious viruses or germs or worms, then no matter how much water you pour in its roots, the plant is going to die. You need pesticides or fertilizers.

Mbeki: - Hmm…but, there is always a disparity. There are countries like USA, who are very liberal in their credit policies and on the other hand, there are nations, which always holds back its money as their savings instead of channelizing it to create more funds in their treasury. Also, the governments of any nation do not have any control on the financial activities of the private companies operating in their country. Suppose if company X acquires company Y or merges with it, then the governments of both the acquired company and the acquirer company needs to intervene in it. The governments need to approve those deals if there is a positive synergy at least beyond 1.5, otherwise, those deals will not be approved. Moreover, in those deals, both the companies engaged in Merger & Acquisitions need to pay 5.5% of the total deal value to both the governments or a single government (whichever is applicable), so that if anything goes wrong in the future due to that Merger & Acquisition deal, then the Governments can bail out the situation.

Manirullah: - nice suggestion! But don’t you also think that there should be a single currency all over the world. Why should we trade in US dollars? Instead of trading in USD, we should make a global currency with which the world trade will take place.

Arindam: - But, what’s the point in making a new global currency if there is no global stock exchange. In that case also, we are the slaves of US economy. If a company gets listed in Nasdaq, then we feel proud about that, but on the other hand, we don’t understand the very basic thing that the US economy is the most vulnerable one. To add salt to the wounds, the most number of bankrupt companies is in USA only. If this is the scenario, then why the hell are we all still trying hard to become dependent on US economy? Just change that perception of slavery and be a free bird, which flies in the sky and also co-operates with everyone. We should have a Global stock exchange where the top 5 profitable companies of every nation will get listed. World Bank will act as the regulatory body cum broker of that exchange. The money that the World Bank will gain by acting as a broker of this World Exchange will be kept reserved in a separate account and will be used only for financial bail-out of those countries, which will be badly hit by global recession. All the trades in that exchange will take place with a global currency. The name of the Global Stock Exchange will be ‘WORLDEX’ (World Index) and the global currency will be ‘GLOMONEY’ (Global Money). The implementation of “WORLDEX & GLOMONEY” will shield any kind of Global recession.