WHAT IS THE TIERRA?
It is a new international, carbon-based reserve currency that is part of a nation’s carbon account in its balance of payments. It would start out a reserve currency, not a vehicle currency. If working well as a reserve currency nations or regions may choose to use it as a vehicle currency. The US dollar is presently both a reserve and a vehicle currency. In phase 1 the Tierra would replace the dollar, euro and yen as a reserve currency; in phase 2 it would replace those vehicle currencies and be part of world monetary union under the auspices of the UN. WHY TO CREATE THE CARBON-BASED INTERNATIONAL RESERVE CURRENCY OF THE TIERRA? A new international reserve currency has been recommended by the UNGA President’s Commission on Monetary and Financial Crises and strongly promoted by China and Russia and less so by India and Brazil. A national or regional currency cannot function as an international reserve currency because those currencies are, on balance, disadvantageous to both the issuing
