Pelican Parts Forums - The final unraveling of the system of 1944

A short essay by JT.

https://www.zerohedge.com/geopolitical/coming-shift-world-trade

In July of 1944, a year and some months before the official end to the Second World War, allied powers gathered at the Bretton Woods Hotel in New Hampshire to hammer out a new economic order that would dominate the world at war’s end.

The meeting alone expressed great confidence in a coming victory. They were not wrong.......

Hazlitt criticized the proposed new monetary system. He said that by making the dollar the world reserve currency, and guaranteeing convertibility into gold only by large trading nations, the new system could not last. This is because there was no mechanism to police nations’ fiscal and monetary policies. The new system would enable endless expansion of money and credit abroad without consequence.

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What we are watching now is the final unraveling of the system of 1944 in all its parts, including the tweak of 1971, which introduces grave dangers to the world of both depression and war. The way out of this predicament is not another cockamamie world order constructed by another globalist economic guru like Keynes.

We need a simple return to fiscal and monetary soundness. Above all else, the United States must get its own house in order, with balanced budgets and sound money, even if that means letting go of its imperial ambitions abroad. That is the best and probably only path to restarting the beautiful ambition of a free-trade world.

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