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Restructuring the International Financial System: A New Bretton Woods?

The first thing to say about the calls for a “new Bretton Woods” is that they overreach, in the sense that it is very unlikely that any changes in the structure of the international monetary or financial system will or should, at this point in history, come out of multilateral discussions that are big enough to merit comparison with the first Bretton Woods. Certainly we are not talking about fixing exchange rates, as the 1944 meeting did.

6 Responses to “Restructuring the International Financial System: A New Bretton Woods?”

GuestOctober 26th, 2008 at 3:47 am

There is only one thing to be done here. Nationalize all Central Banks. Abolish all private Central Banks.Make the governments accountable and transparent.Anything other than that is all baloney.

Morrison BonpasseOctober 27th, 2008 at 8:12 am

Even if the upcoming 15 November conference is not likely to change the global financial structure at that meeting, it should still formally launch the world’s long path to a Single Global Currency, managed by a Global Central Bank within a Global Monetary Union, by initiating research and planning for that goal. The current global financial turmoil did not begin with a currency crisis, but currency risk is part of the resulting instability and the Iceland krona may not be the only currency to fail.The most important goal of the 1944 Bretton Woods conference was global monetary and currency stability and pegging the U.S. dollar to gold and other currencies to the dollar was the chosen method. Monetary and currency stability is the primary goal of the International Monetary Fund. The world need not move from one country’s or one region’s currency to another as THE #1 currency, but should transition to a Single Global Currency. The success of the euro shows that monetary union is thebest way to ensure monetary stability. If 16 countries can use the same currency, why not 192? The only problem with the euro’s stability is that it exists in a multicurrency world.The world should begin planning now for a Single Global Currency. In addition to eliminating currency risk, the use of a Single Global Currency would eliminate the current foreign exchange trading expense of $400 billion annually.The Single Global Currency Assn. promotes the implementation of a Single Global Currency by 2024, the 80th anniversary of the 1944 conference. That’s only 16 years away. The Assn’s website iswww.singleglobalcurrency.org. See, also, my book, “The Single Global Currency – Common Cents for the World.”

GuestOctober 27th, 2008 at 10:52 am

For your consideraton, perhaps the politicians are aware that here is already an integrated central bank-centric framework that has been proposed to and is being considered by the Committee on Payment and Settlement Systems (CPSS)at the Bank for International Settlements.Read the comments of Kenneth Young (USA) at -http://www.bis.org/publ/cpss83comm.pdf

Gerald PechenukOctober 27th, 2008 at 4:48 pm

A few salient points that are missed in all of the above:1) It was Franklin D. Roosevelt who iniated the Bretton Woods of 1944.2) FDR proposed the system as part of ridding the world of all colonialism, especially British colonialism at the end of WWII.3) The “New” Bretton Woods has been conceived and championed by New Hampshire USA born economist and former Presidential Candidate, Lyndon H. LaRouche for the last 20 years, since the October, 1987 crash of the markets signalled the failure of the anti-FDR floating exchange system ushered in complements of George Schultze and Richard Nixon’s decision to end the fixed exchange of the original FDR Bretton Woods.4) The New Bretton Woods, as designed by LaRouche, is identical to the intent of FDR’s Bretton Woods, i.e. a Treaty of Westphalia committment to “the advantage of the other,” that is to free the world of the neo-colonial looting policies carried out by the Anglo-Dutch financial oligarchy of today. This means an end to non-regulated Cayman Islands and off-shore off the books, financial thuggery.5) Gordon Brown and Tony Blair are so far off from this, in terms of their intentions, that they would be better off staying home and watching the proceedings on TV!

Pat,DublinNovember 6th, 2008 at 7:31 pm

In a Global Currency,would the Global Central Bank be as succesful as the IMF in preventing numerous politically unstable states from cheating on the economic rules and failing to repay loans?With the global currency preventing country currency devaluations,politically unstable countries could only regain cost competitiveness with prolonged, grinding wage deflation,which is very difficult politically.Given this political difficulty,political unity (or at least the long march towards quasi-political unity as in the EU)is essential for a successful currency.

Mike PattersonJuly 4th, 2013 at 7:00 am

I still think governments are to blame for the various financial troubles we are experiencing. It is easy to blame the bankers for a crisis, but let's be fair, they are merely following the rules and laws set out by a government. Fixing forex or exchange rates? Please, no.

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