Article III: The Global Dollar Company
The principal business of the Global Dollar Company will be management of the Global Dollar Reserve (GDR), an extremely diversified portfolio of real financial assets. It is expected that value will be divided equally between cash, government bonds, large capitalisation equities, property, and precious metals, with as wide an international distribution as is practically achievable. Initially, these assets may be represented largely by holdings of established exchange traded funds (ETFs), making indicative value calculations relatively simple and transparent. Regular independent auditing and other measures will ensure confidence in the GDR as ultimate security for the value of Global Notes (GLNs).
Approximately 90% of cash holdings will be divided between around 15 major currencies according to a prescribed formula, the rest varying for administrative purposes. Management expenses will amount to not more than 1% of total asset value in any given year. The fundamental purpose of the GDR is to link each Global Dollar (GL$) to a share of the global economic asset base, reflecting the general financial opportunity cost of funds and, as far as possible, access to real underlying wealth.
Associate Members of the Global Dollar Company will be commercial banking institutions that support in principle the aims and guidelines of the organisation. Members will be banks otherwise qualified as Associate Members that hold shares in the company. Shares will be issued on an annual basis, with a total of 1,000 shares awarded to the top 100 GLN-holding Members or Associate Members, in proportion with the average holding of each institution during the previous year. These shares will be compulsorily redeemed by the company after 10 years, so that a cumulative bank shareholding of 10,000 shares is eventually established. This shareholding will reflect a 10-year rolling average of each Member’s participation in the Global Dollar system. The remainder of company ownership will consist of 5,000 permanent founder shares.
In this way, stability and strategic company interests will be balanced against the interests of a diverse participating membership. The Global Dollar Company will be a business that has many of the characteristics of an international organisation, bringing together banks from around the world for the management of the common wealth. There is some possibility of such an organisation descending into political dysfunction, but maintaining a degree of independent influence through the retention of a one-third founder vote should be sufficient to mitigate this risk.
Members of the Global Dollar Company will meet on a regular basis in order to decide issues of business and asset management, each share having a single vote. As an international ‘commonwealth of finance’ and global asset manager, the company may occasionally pass resolutions to establish relevant guidelines of direct concern to the business. Such guidelines might, for example, describe processes surrounding the interbank settlement of GL$ denominated obligations or the creation and redemption of GLNs. Resolutions arising from more general concerns regarding commercial relations and the international political economy might also be considered. The company will have an ongoing interest in the preservation of efficient commerce, financial stability, and real wealth for the benefit of its ultimate customers, the users of the Global Dollar monetary system.