Harmonizing the world's accounting rules: Joan Veon warns it's paving path toward global currency

We live in a global world – a world in which all of the walls or barriers between countries have been effectively torn down.

In 1945, the political walls were torn down when the United Nations was birthed as each country ceded sovereignty to a global organization. In 1980, the Monetary Deregulation Act was passed, which made it legal for Americans to invest overseas. At the same time, the Group of Seven developed countries passed similar laws beginning the integration of currencies, securities, money and investments.

Now, all the nations of the world effectively invest in each others country. In 1994, the General Agreement on Trade and Tariffs – now the World Trade Organization – was passed, tearing down trade barriers between countries. Now foreigners just ship into the United States without any paperwork or bills of lading. In 1998, the International Criminal Court was birthed which has started the process of harmonizing legal and judicial laws between countries. This process has now been acerbated as a result of the attacks on America.

Today, we see – as a result of accounting irregularities at Enron – the need to change to international accounting standards. Sen. Paul Sarbanes, D-Md., has introduced a bill that is expected to be voted out of committee which is to be called, "The Public Company Accounting Reform and Investors Protection Act of 2002."

I find it interesting that our Congress is always fixing something that is broke. It appears that we just can't do anything right any more. Every time a new bill is passed to fix what is broke, it erodes our sovereignty and reduces the power of Congress – as they vote themselves out of a job.

This new proposed bill does just that. Sarbanes wants to create a "Public Company Accounting Oversight Board" which "shall be a body corporate (and) operate as a nonprofit corporation, and have succession until dissolved by an Act of Congress. This Board shall not be an agency or establishment of the Untied States Government."

Hello! Did you catch that? This new Oversight Board will not even be a part of our government. It will not have any congressional oversight.

Furthermore, Sarbanes' bill will completely re-write the Securities Exchange Commission Act of 1934. It would be good if we remember – as a result of the 1929 stock exchange crash and the subsequent depression – Congress determined to separate the investment banking activities from commercial banking activities by passing the Glass-Steagall Act in 1933. This bill was repealed in 1999. Interestingly enough, the extreme volatility that we are now enduring in the stock market has recently been accredited to the repeal of this act. This repeal also paved the way for foreign banks, insurance companies and brokerage firms to now buy American banks, insurance companies and brokerage firms, further integrating the monetary system of the world.

So, we have our members of Congress signing over their authority to a non-profit organization that will exercise complete control over our accounting standards and auditing firms. The entire SEC Act of 1934 which was part of how Congress fixed the 1929 stock crash is being re-written and will now give authority to a non-elected group of people who will change our accounting and auditing rules, thus opening the global harmonization door wider.

Do we see the trend here? Almost 70 years ago, the fix included Congress. Now the fix excludes Congress!

All public accounting firms – sole proprietorships, partnerships and corporations – that engage in the practice of accounting or preparing or issuing audit reports will come under their jurisdiction. They will have to register with the Public Company Accounting Oversight Board and pay dues to it. The Oversight Board will have the power to establish auditing quality control, ethics and other standards, conduct inspections of registered public-accounting firms and enforce compliance.

In addition, they "may recognize as 'generally accepted' for purposes of the securities laws, any accounting principles established by a standard setting body that considers the need to keep standards current in order to reflect changes in the business environment, the extent to which convergence on high quality accounting standards is necessary or appropriate in the public interest and for the protection of investors." This basically describes international accounting rules. Lastly, the Oversight Board will accept reports of foreign public-accounting firms that comply with the Act.

In light of our integrated world, should we ask if a harmonized currency is next? Is that what the falling dollar signifies? If so, we are ready for it with the new proposed accounting rules. Is anyone jumping for joy?

I am less concerned about this one than a lot of things. My biggest concern is about its effects on small business. The dues could be used as if they were a tax and become a barrier to entry. The global currency is the dollar. Ever since the US took over the heroin pipeline from Afghanistan to the Balkans, the competition with the 200 Euro note (as the offal currency for the dope business) has been moot.

In 1980, the Monetary Deregulation Act was passed, which made it legal for Americans to invest overseas.

To be accurate, the act allowed the Federal Reserve to buy the bonds of other countries in its open market operations. This allowed the Fed to rescue the inept, otherwise insolvent money center banks from foolish loans to LDCs. Actually, they weren't so foolish, since they were operating on the very unlevel playing field of "heads we win, tails the taxpayer loses."

Regarding the articles primary point: as long as accounting firms are paid fees by the audited companies for their services, there will be a problem regardless of who provides the oversight.

Why don't the various Stock exchanges establish accounting rules for a company to be able to list on their exchange and if they wish to cooperate with other exchanges around the world to form similar standards that would be fine? In order for a Stock exchange to be truly viable as a safe place to invest they need to insure complete and transparent information is available. By letting the various exchanges compete for investors and traders we would have a functioning market that would be self-correcting over the long run. No need for our congresscritters to get involved.

The entire SEC Act of 1934 which was part of how Congress fixed the 1929 stock crash is being re-written and will now give authority to a non-elected group of people who will change our accounting and auditing rules, thus opening the global harmonization door wider.

And please notice how this is being done under a alleged Republican administration. Bush-1 called it the "New World Order". Bubba-1 and his socialist European pals called it "The Third Way". Bubba-2 will do his part to insure the formation of the new "North American Union" of Canada,Mexico,and the US. This moves the plan forward.

BTW,regardless of what "new and improved" label you put on it,the root name is "Fascism".

In light of our integrated world, should we ask if a harmonized currency is next?

No. Why bother,since the goal is to eliminate currency alltogether,and move to a "electronic credits" system. The war against a police state is over and they have won the minute we become a "cashless society". This will be "sold" to the world public as a method of stopping terrorists,drug smugglers,and other criminals including tax cheats,BUT the real purpose is to obtain TOTAL power in the hands of gooberment officials. ALL the gooberment has to do to totally shut you down in a cashless society is to delete your number. No number=no purchasing power. You don't exist.

Why doesn't Congress start their counting procedures in the own apartments of government.

What's the rent on those apartments? Are pets allowed? How about a swimming pool?

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