And perhaps the debasement of various currencies?
For all those who are unfamiliar with Bretton Woods I, this was a monetary management conference between industrial states that took place after the end of World War II. The Bretton Woods Agreements formed obligations for each nation to adopt a monetary policy that maintained the exchange rate of its currency within a fixed value, among other various implications. This agreement, which took place in Bretton Woods, New Jersey, established the system where the US Dollar became the world's reserve currency.
After about 64 years under the current system, the current global financial crisis has arisen, and now there will be a similar meeting to Bretton Woods I that will begin on Saturday the 15th of November, 2008. G20 countries, along with China, will be participating in this meeting.
There is speculation filtering around the financial community that, considering the United States has an unsustainable current account deficit while continuing to inflate the money supply, the world will no longer use the US Dollar as the world's reserve currency. Such a decision does make sense considering the amount of debt the country owes. Moreover, the US may decide to debase (intentionally lower the value of) the US dollar in an effort to decrease the amount of debt the government owes. For instance, Germany decided to debase its currency after World War I to combat the enormous amount of reparations the nation had to pay.
If any of this does happen, it will happen fast, as in overnight. And if it does happen, be ready for public outrage considering these possibilities are NEVER discussed on any major news or financial news network in the US. It will be interesting to see what the nations decide upon, but either way, the US will have to give up one thing or another in this new agreement.
http://www.guardian.co.uk/business/2008/nov/09/george-bush-washington-summit
http://en.wikipedia.org/wiki/Bretton_Woods_II
For all those who are unfamiliar with Bretton Woods I, this was a monetary management conference between industrial states that took place after the end of World War II. The Bretton Woods Agreements formed obligations for each nation to adopt a monetary policy that maintained the exchange rate of its currency within a fixed value, among other various implications. This agreement, which took place in Bretton Woods, New Jersey, established the system where the US Dollar became the world's reserve currency.
After about 64 years under the current system, the current global financial crisis has arisen, and now there will be a similar meeting to Bretton Woods I that will begin on Saturday the 15th of November, 2008. G20 countries, along with China, will be participating in this meeting.
There is speculation filtering around the financial community that, considering the United States has an unsustainable current account deficit while continuing to inflate the money supply, the world will no longer use the US Dollar as the world's reserve currency. Such a decision does make sense considering the amount of debt the country owes. Moreover, the US may decide to debase (intentionally lower the value of) the US dollar in an effort to decrease the amount of debt the government owes. For instance, Germany decided to debase its currency after World War I to combat the enormous amount of reparations the nation had to pay.
If any of this does happen, it will happen fast, as in overnight. And if it does happen, be ready for public outrage considering these possibilities are NEVER discussed on any major news or financial news network in the US. It will be interesting to see what the nations decide upon, but either way, the US will have to give up one thing or another in this new agreement.
http://www.guardian.co.uk/business/2008/nov/09/george-bush-washington-summit
http://en.wikipedia.org/wiki/Bretton_Woods_II
Buy on AliExpress.com
