Resoultion 106: Currency Index [approved]

[The Union of Tinis]

Observing the differences between the economies and currencies of the Furry Fedeartion and understanding the complexities of currency exchanges and;

Desiring to increase sability to all markets private and public in the Furry Federation;

The Furry Federation shall institute a Currency Index:

1. The Currency Index shall be called the Furry Federation Credit and shall be abreviated by the letter 'c' or 'ffc'.

2. The Currency Index shall not be printed or coined in any form so that no Federation member shall loose the value of their native currency.

3. The Currency Index shall be available for trade by Federation member governments only.

4. The Currency Index shall be equal in value to the average currency of the six largest Furry Federation member nations.

5. In order to facilitate the trading of the Currency Index, on May 1st of each year, the Furry Federation Council shall elect one of its member nations to the position of Furry Federation Treasurer. The Treasurer shall not be the Chair of the Council or any other officer created by the Council at a later date.

5. Trade in the Furry Federation Credit shall consist of a government contacting the Treasurer and requesting a currency transpher. The Treasurer shall asses the member nation's currency and determine its value in relation to the Currency Index. The Treasurer then shall in writing note down the member nation as having an account with the Furry Federation unless they already have one, in which case they use the already established account. The member nation shall then deliver a sum of their native currency to the Treasurer who shall keep the physical currency in Furry Federation custody until such time as the member nation purchases it back using Furry Federation Credits. The Treasurer then shall note the equivalent amount of Furry Federation Credits that the physical currency equates to in the member nation's account.

6. Member nations may use Furry Federation Credits to purchase goods and materials from other nations. In order to do this, both parties shall contact the Treasurer and inform them of the transpher of goods or supplies. Upon the documented transpher of the goods or supplies, the Treasurer shall transpher the agreed upon sum from one member nation's account to another as aggreed by both nations. If the nation to recieve the Furry Federation Credit does not have an account, the Treasurer shall create one.

7. Any nation that determines wrong doing by the Treasurer can appeal to the Chair nation of the Furry Federation who shall independatly investigate the conduct of the Treasurer and determine if the Treasurer held up Furry Federation Resolution or not. If the Treasurer has failed to do so, the Chair naition shall immediatly declare a no confidence vote in the Treasurer and shall present the evidence of wrong doing. If the vote determines the Treasurer shall be removed from the position, immediatly afterwords, elections shall be held for a new Treasurer and the previosu Treasurer shall be forbidden from running for the position again for a minmum of five years.

[gbwt]

Hmmm, i'm not very trusting when it comes to money and curancy exchanges. Put it in Stupid terms for me. Will this be like the transfer to the Euro? Also, i want to hear some pro's and con's.

[The Union of Tinis]

This will be more like the gold standard, except no gold. I doubt the establishment of a federation wide currency would ever fly, and I know I would vote against such thing. But currently the currencies of various federation members are based on various economic indexs or the US dollar. My nation puts forth this resolution to standardize the index across the federation. The trade function allows for a government to counter rapid inflation or deflation in their own currency by using the index as a stabilizing force by buying into the credit.

Pro:
The Currency Index is not a new currency, but an average of existing currencies
Allows a nation to buy into the credit to stablize their own currency, it kind of works like a bank in that it keeps the value of your money relatively constant
For most member nations, buying into the credit has absolutely no effect on the index
The credit trade scheme allows for visible and fair trading between nations of major items or large transferes of goods
By establishing the index in relation to the currencies of six nations it will remain relatively stable even if two of those nations have a sever down turn economically
The only entities that can trade in the Furry Federation Credit will be member nations; individuals and business won't be able to use it

Con:
The index can become unstable if half or more of the indexing nations become economically unstable
Distrust of a common index may lead to the ffc not being used very often
The Furry Federation must keep the physical currency used to buy the credits in a safe place; thankfully there are several vaults installed in the council hall basement, but if that is insufficent, we will have to find alternative storage places

Of course if the resolution is lack in qualities that you like, you may vote against it or propose an amendment to fix the errors.

[Lemuriania]

The Democratic States of Lemuriania feels that any sort of mutli-lateral economic plan of any sort wouldn't be in the best favor of our ecomony. The GDP per capita of Tinis is roughly 101.39 Keets [$81.11] as opposed to Lemuriania's 21,396 Keets [$17,116.89] or The Kingdom of Drastrata's 49,879.29 Keets [$39,903.43]. Let's also not forget The Military Empire of Shikeishuu; who's policy of "Guns and Guns; Screw the Butter" has only a GDP per capita of 652.11 Keets [$521.69] with is sad considering the last census showed the MES populus to be 4,288,000,000 furs.

Until we are fully convenced that this in no way, shape or form will effect the economy of Lemuriania... Our vote will remain 'No.'

[Information: nseconomy.thirdgeek.com/nseconomy.php?region=Furry_Federation&exchange=2 ]

[The Union of Tinis]

[very ooc: Muah. Diplomatic conflict is fun!]

[gbwt]

The said:

Pro:
The Currency Index is not a new currency, but an average of existing currencies
Allows a nation to buy into the credit to stablize their own currency, it kind of works like a bank in that it keeps the value of your money relatively constant

So, by averadging this, the largerest nations in our federation shall get a little more out of their imploded economies, and the smaller nations with out a failign economy shall see huge price increases?
I'm sorry, but unless i ahve made a mistake, this wont fair well for my country...

[The Union of Tinis]

As for every resolution, everthing is maluable. If you are concerned that the method of calculating the index is unfair to your nation, you are free to offer up an amendment. If the resolution fails, then there are no risks, but if the resolution passes and you pass your amendment to the resolution, then you can fix what you observe to be a problem with a resolution.

I would suggest that any nation that feels the method of calculating the Currency Index is unfair submit an amendement that would change it. Perhaps instead of the top six nations, but all of them. Or even just your nation if you think it would fly. Remember, this is not Tinis' Federation, this is our Federation. We each have our rights and responsibilities.

But one last word in defense of the resolution as is. If you choose not to purchase Furry Federation Credits, then you are at no risk what so ever in the event of a wide spread economic collapse amung the largest nations. With any investment there are risks, but if you do not want to take those risks, you don't have to invest. But in order to make the system worth while, I have tried to insure that the base of the Index was wide and diverse enough that fluxuations in the top six nations would cancel each otherout in all but the most extreme circumstances.

[gbwt]

sorry, but the more i look at this and ther bits of data, all i see is the larger nations benifiting and the smaller ones getting the short straw. I vote no.

[Ciata]

The idea behind such an agreement would be to help equalize international trade. Where in the current system, one place will sell a certain good at $5, in other, more developed countried it is sold for $50. Like going to Peurto Rico and buying a pair of Nikes for $10, when it would cost $70 in the US. It would ensure a more equal payment and distributation of wealth to all countries. While one will go up, and another down, it would level out to bennifit all since they would be able to afford the same general amount of goods via the proffits from improved international trade.

[Lemuriania]

Ciata said:

The idea behind such an agreement would be to help equalize international trade. Where in the current system, one place will sell a certain good at $5, in other, more developed countried it is sold for $50. Like going to Peurto Rico and buying a pair of Nikes for $10, when it would cost $70 in the US. It would ensure a more equal payment and distributation of wealth to all countries. While one will go up, and another down, it would level out to bennifit all since they would be able to afford the same general amount of goods via the proffits from improved international trade.

So you prove my theory correct, Ambassitor. Crippling, more socialistic governments---such as Tinis---would be riding the waves of success. Hard-working libertarian economies, such as Lemuriania and Drastrata would be pulled down. Not a chance.

If you want Ciata's (or anyone's) economy to be more successful, try loosening some of your economic sanctions and allow for businesses to actually start and grow.

As for us, we're agree that you can take this resoultion and shove it!! ... in the trash bin.

[The Union of Tinis]

Though this controversial resolution has passed, you do not have to get involved with it. In fact, if you wish to protect your economies, you can go about your business as if the resolution never passed. Remember, it is your option to buy into this system and it is to be a service to any nation that wants it. If you feel you are capable of standing without it, that's probably for the best.

I do admit that Tinis has a very much a socialist economic system in place. Despite the low value of our currency, we stil strive for quality of product and labor. Not because of our drive for wealth, but our drive for excellence. Sociologists put this alternative motivation system a different way of course, but it serves a similar purpose to that of money for our greatest works. And I do not forsee this system changing in Tinis in the forseable future. Sure our money is basically worthless on the international market, but its not going anywhere, either up or down.

I could of course make the joke that, really it can only go up.

My nation put forward this resolution in the hops of helping raise up our disadvantaged neighbors, not to tear down the well off. To provide a stable means of international transaction between member nations. And to insure an open and fair trade between soverign governments. Nothing more.

I sincerily hope that relations have not been strained to much for this vote. Remember, just because it passed does not mean you have to buy into it.

[The Union of Tinis]

Current Curency Index: 123.45908333 Furry Federation Credits = $1

[Will try to update on occasion.]