The Hydrodollar System

The Hydrodollar System

By: Marcus Perriello  |  Our Voice Contributor

Mankind has always practiced commerce and formed the rules, laws and practices of economics with a certain degree of obliviousness when it comes to the means by which each respective commodity exists. Like the resources that make up all life on Earth, human beings depend on a specific range of environmental circumstances to grow and thrive. Without these sets of circumstances safely in place, we as living beings could not exist. Yet throughout the millennia, mankind has operated with relative impunity when it comes to the issue of the Environment.

Because of our ability to adapt to our environment, we have a certain advantage over other species that allows us to change our lifestyles to meet the conditions under which we exist. But there’s a catch: If the environment that allows the resources we depend on to sustain life is compromised, so is the future of the human race. While we can adapt and overcome various environmental extremities, the resources we rely on cannot. Humans have had to depend on the cycles of nature to gauge their level of potential prosperity over the years, and still do to this day. Rationalization of this phenomenon has taken on many forms: Religious deities, instinctual perception, scientific analysis, even scapegoating of “The Others.” Despite the progress mankind has made throughout its relatively short history, the relation between Environment and Economics has remained on the back burner…until now.

Every economist knows that economic lifespans are determined by the overall health of the environment, which includes human behavior. People exhibit different behavior patterns when the environment around them changes, which leads to correlated changes in economic activity. But there is one issue that has always been the proverbial fly in the ointment: Money. Since the transition away from bartering into Finance, money has always been the primary tool by which trade is conducted. Yet for as long as money has existed, it still presents itself as both a solution and the problem to the greater riddle: How can Economy and Environment coexist?

Part of the answer is obvious. They will coexist, no matter what. But the relationship between the two has always had their respective functions at odds with each other, due to the concept of Money and Finance as being dependent on limitation of reproduction. Even to this day, the concept dictates that the more of a currency is produced, the less value it has. This very concept of assigning value is the sole reason why Economics and Environment have failed to coexist peacefully and productively. The U.S. Dollar, or ‘Petrodollar’, is the best example of this. Through direct control of the global oil market, the United States has been able to ensure that its currency maintains its status as the world’s reserve currency, giving them primary control over the global economy.

But this situation is being tested, and in some ways changed, as other countries are rushing to abandon the U.S. Dollar in favor of other forms of currency. China and Russia have been working together to create their own petrodollar as a viable substitute, while more and more countries are considering reverting back to having Gold as the world’s reserve currency. Both types of Finance have one fundamental problem: Gold and Oil are tangibles that can be collected, hoarded, and controlled by those ambitious, greedy and ruthless enough to sacrifice anything and everything in their path to ensure their grip on power. This hoarding and consolidation leads to the inevitable destruction of the Environment, and the human race in the process.

Such is not the case with the Hydrodollar system. The Hydrodollar is a new currency that uses the global water table as its means of assigning value, and because the table changes every year, so too does the intrinsic value of the currency. Moreover, this relationship between Environment and Economics becomes directly interlinked through the resulting changes in environmental viability. The higher the water table, the higher the intrinsic value of the currency. By the same token, the higher the water table, the more natural resources can be produced. This directly links the ability to create more money to the health of the environment. More money can be created when the GDP grows. This shows a self-perpetuating system that ensures both stability and sustainability.

The rationale for this is self-evident, and because the viability of the system itself is dependent on the viability of the environment, there literally is no incentive for a war-based economy to exist. Such an economy is the antithesis of the philosophy behind the Hydrodollar system. Unlike the Petrodollar, the means by which the Hydrodollar system is created and maintained does not depend on capture and control of natural resources, but instead on the ability of mankind to care for the environment and ensure the circumstances under which life can exist are cultivated. The very design of this system renders War unprofitable because the health of the system itself depends on greater levels of Peace, Prosperity and Harmony with each other and with our environment. The great thing about this is that we already have everything needed to make this system work taking place. All that’s needed is to realign the pieces to create the necessary puzzle picture, and because the very concept of Money and Value are part of this undertaking, cost is not an issue.

The formula for assigning intrinsic currency value is relatively simple, but it is predicated on the initial water level at the start of the program. If the world’s water level – that is all the water on Earth taken into account – measures 100 Liters at the start of the program, this will be the benchmark for all future value assignments; a kind of predetermined “Sea Level”, as it were. This would start the program off with 100 Liters equaling the full $1.00-value. The next year’s measurement would determine the intrinsic value for the coming year. If the initial 100 Liters was reduced to 90, that means that the Hydrodollar would be assigned $0.90 of its full value, or a depreciation of 10%.

Now, flip the script: If the water level reads 125 Liters compared to the initial 100 Liters, that puts the intrinsic value of the currency at a 25% surplus, or $1.00 having purchasing power of $1.25, meaning what would have initially cost $1.00 is now only $0.75. The formula used to show the coming value assignment is a simple matter of conversion from metrics to percentage. Not only does this provide the incentive to stop war-based economic practices, but it also acts as a gauge for the progress we make as both in our respective societies, and as a species. Another great aspect about this system is that it can be adopted using whatever timeline is agreed upon. It can be one year, two years, ten years, even twenty years. This part of the system’s function is entirely subjective, but either way, the power of the system lies not in the hands of people, but in the hands of Nature. With the power that we do have, we can use it to move the system forward and work towards a healthier and more prosperous environment.

An important fact about this system is that any and all attempts at seizing and controlling water supplies and/or other natural resources have literally no affect on the system itself. Unlike what we see with the Petrodollar, where the system can be seized and controlled through the global oil market, the Hydrodollar system cannot be seized or controlled because the power of the system is not available to be captured like a common commodity. The design of this system flushes out the reality that all life on Earth is interdependent on the same environmental circumstances and must be properly maintained in order for life to be able to flourish. The entire water supply of the planet is not something that can be exploited in this fashion. National boundaries, International Waters and the various forms water takes in every area of the planet keep exploitation at a minimum. The fact that, once again, all life – including human beings – is interdependent on it makes both the rationalization and the action of trying to capture it exercises in futility. The argument that this could start wars over water is a ridiculous notion because of the incentives and design of the system itself. By way of a Green New Deal, and some common sense, we can build our way back up from the brink of oblivion into an era of unparalleled harmony and prosperity. Various methods and techniques, such as planting trees, seed banking, transitioning to Green and Renewable Energy, and changing the way economies function are essential to ensuring the future of not just humanity, but all life on Earth. The institution of the Hydrodollar system can be the catalyst that propels us in that direction.

Leave a Reply

Your email address will not be published. Required fields are marked *