zundel

Tuesday 315

Bretton Woods 2

Filed under: Economy, Politics — Tags: — zundel @ pm

The United States, Europe and Bretton Woods II” by George Friedman and Peter Zeihan from Stratfor 2008-10-20

… gold was actually replaced by the U.S. dollar. … Whereas before, the greatest limiter was on the availability of gold, now it became — and remains — the whim of the U.S. government’s monetary authorities.

Relying on a currency [euro] that is not in the hands of a sovereign taxing power, but dependent on the political will of (so far) 15 countries with very different interests, does not make for a reliable reserve currency.

The net effect would be to create an international bureaucracy to oversee global financial markets.

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