I kept reading in the U.S. press about how Europeans want to overhaul the Bretton Woods system. For those of you who don't know, Bretton Woods is the post-WWII international financial system set up primarily under U.S. pressure and along Keynesian principals in 1944. It was heavily modified under Reaganomics along Chicago School principles.
It created the World Bank and the International Monetary Fund (IMF) on the gold standard. Nixon killed the gold standard in 1971. The Dollar then took gold's place in a sense as the standard and was seen as the most secure currency to own because it is supposed to be backed by the "Full Faith and Credit of the United States" and the U.S. had great financial credit at the time. It was the reserve currency. It still is to a large degree, but the debt crisis is not yet finished playing out by a long shot. It remains to be seen what policy changes will be implemented by the plutocrats.
I did a search on "Sarkozy overhaul "Bretton Woods'" and came up with the following:
France and Germany want to put the squeeze on tax havens and there are calls to establish minimum reserve ratios for banks, clamping down on executive pay packages and improving overall transparency.
Big powers seek ways to overhaul Bretton Woods
Saturday, 25 October 2008
The Saudi Gazette
The U.S. is going to be dragged kicking and screaming into this, at least in public. Henry Paulson took full advantage of the wild bank reserve ratios and has now traded his equally wild speculative (junk) investments for tax dollars. Now they'll reluctantly go along for a while with regulation. It's the biggest scam going.