Friday, 18 January 2013

Bretton Woods was not a gold standard

Not really.

It fell apart when the US printed more dollars than it had gold backing for, France called, and the system blew up.

The new system that appears to be forming simply recognises gold as a store of value.
It makes no attempt to peg currency to a certain weight of it.

Sadly, nor does it deal with the outstanding trade differentials which are already stored, but they are Chinas problem (anyone else will simply buy US weapons)

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