The WOCU is Here! Finally, a Stable Reserve Currency to Replace the Dollar

It may sound like a character from StarWars, but starting in Q2 of 2010, the WOCU or World Currency Unit will become the medium of exchange among trading nations. This is welcome news to a world weary of Dollar hegemony and the violent and bloody US imperialism that comes along with it.

One of the most beneficial aspects of the Wocu is a stabilization in the prices of imports, exports, and traded commodities -- freeing the people of the world from the crippling manipulation of currencies by Central Banks, which is directly responsible for a great deal of human suffering at the consumer level.

For me, it's not such great news since I am a currency trader and rely on the international corruption of big banks to make a living. Oh well, it's a small price to pay to finally jettison the Dollar and the massive reserves that nations are forced to hold [often against their will] in order to do business with one another. For my part, I'll find another Plutocratic enclave to exploit.

Meanwhile, the Wocu is apolitical -- and it's about damned time.

I'm telling you about the Wocu, because no one else will. Otherwise, Americans might take measures to protect their wealth by properly diversifying their investments and making them impervious to the criminal financial sector that runs the US Federal government.

The Wocu was originally proposed more than a decade ago by the IMF (International Monetary Fund) in 1996 and has since been modeled and tested for volatility to ensure a safe and sound global currency for the long haul. It is a derivative based on the exchange of the world's top 20 economies. It is re-weighted every six months based on the GDPs of those nations as reported by the IMF. What could be more democratic?

The Wocu has its own exchange at wocu.com, where prices against all currencies are posted daily. Nations will finally be able to systematically liquidate their rapidly devaluing Dollar reserves and build new holdings in the more stable and safer Wocu, instead, enabling volitile-free international trade. From their press release:

The Wocu has been developed as a derived world currency unit to allow corporations, financial institutions, governments and even individuals to trade across national boundaries and hold foreign assets with minimal risk of losses caused by exchange rate fluctuations.

Whilst international trade is conducted in US dollars or Euros a sharp change in exchange rates causes huge differentials, vastly complicating risk management and forward planning. With the emergence of Russia, China and India into the world markets a less volatile world currency is needed. As the Wocu is a derivative of the exchange rates of the world's top 20 currencies as measured by GDP it substantially reduces the risk factors. WDX Organisation, the company behind the Wocu, has weighted its algorithm in line with these GDPs, creating a demonstrably less volatile and totally apolitical currency unit.

Michael King, WDX managing director, said: "We are offering organisations, governments, and, through them, individuals, a new instrument of great elegance and power. Its use will herald less risk, less volatility and more certainty. I am delighted that the Wocu, the result of much academic research and technical development, is now a reality."

Just a few days ago, the first historic Wocu transaction kicked off this new era:

Singapore firm to price marine fuel in Wocu

WDX, the company behind the Wocu - World Currency Unit - has signed its first deal in an agreement with Navitas Resources, a Singapore-based specialist energy and climate commodity trade facilitator.

Navitas intends to price marine (bunker) fuel in Wocu as well as US dollars, from the second quarter of the year. The agreement follows Navitas joining WDX's Early Participation Scheme earlier this year.

This will enable shipping companies to tender in either Wocu or dollars for fuel price quotes at various ports around the world and allow suppliers to place offers in the market 24/7. The marine fuel market is around 200 million metric tonnes a year globally, valued at approximately $100 billion per year.

Francesca Zerenghi, chief executive of Navitas Resources, said: "We are taking a leading role in the development of non-US denominated commodity transactions. Both energy companies and developing countries with significant US dollar exposure will have the opportunity to reduce volatility in their earnings and balance sheet through the use of the Wocu. We became an Early Participation Scheme member of the WDX Organisation, along with leading foreign exchange companies and securities firms, as we strongly believe that developing markets should have access to a trading platform where they can control their risk much more effectively. Reducing exchange rate fluctuation risk enhances this considerably."

In January 2009, I predicted that the Dollar's reign as the world's reserve currency would last no longer than 18 months, and I believe the watershed moment is here. The Dollar will trade concurrently for awhile to foster an orderly liquidation of global holdings as it is repatriated by the United States.

You heard it first here. It's really very good news for the rest of the world.

I'll let you decide what this bodes for future of the the US economy.