Horace Heffner wrote: > Declaration of the Summit on Financial Markets and the World Economy: > > http://www.whitehouse.gov/news/releases/2008/11/print/20081115-1.html > > http://tinyurl.com/6czgg7 > > The end of the Bretton Woods system as we know it is coming.
I don't quite understand what you mean here. Bretton Woods was a system of fixed exchange rates. I thought Bretton Woods collapsed back under Nixon, ever since which currencies have been floating (or sinking or swimming) pretty much on a catch as catch can basis. The end of the U.S. dollar as the de facto standard reserve currency is probably coming, but may take longer to arrive than one might have guessed. As I understand it (which is very, very badly) the usefulness of the dollar (and the pound) as reserve currencies has at least as much to do with the existence of global money markets in same as it does with any underlying value or stability to the currency. Setting up a sufficiently flexible money market in euros to allow the euro to take the place of the dollar may take a while. > > http://en.wikipedia.org/wiki/Bretton_Woods_system > > The formal beginning of a New World Order with teeth? > > The world bank needs about a $100B injection of cash. It is going to be > tough to get the research and deployment funding needed to solve the > real problems if we have to bail out the whole world financially. > > Best regards, > > Horace Heffner > http://www.mtaonline.net/~hheffner/ > > > >
