Quote:
Originally Posted by blktour
I personally think this was boiling from the law of 1913 to take away the gold backed dollar. This is what happens when you invent a private corporation to give loans to EVERYONE who uses the dollar. I feel that the Brenton Woods act was the nail in the coffin that came out and said, "look at what we are doing!" right in our faces. Our Keynesian economics that this country runs on, will have its issues.
This just shows why this type of economy is ok for a little bit but hard to sustain because our scales of who should always be on the top in our Republic, this type of economy flips that scale and us the people get the shaft. it goes against what this country was built on.
I also feel that a discussion like this of "who did what" or trying to find out the real culprit is why Keynesian economics was good for the uber rich to implement. No one really can pinpoint it because we live in a system that was a "theory."
my opinion of course.
|
Huh? The gold standard was in place until the 30s, and Bretton Woods put in place a system that was very similar to the gold standard, the main difference being that the US took the role of guaranteeing the whole system by making the dollar the intermediary between other currencies and gold. But from the inception of Bretton Woods until 1971 it was basically fixed that 1 ounce of gold=35 dollars.
And I fail to see where Keynesianism comes in in any of this.
The basic problem here had was made worse by monetary policy, but it was not caused by it. The cause was excessive leveraging using CBOs as collateral, and the risk on those CBOs was vastly underestimated by private credit rating agencies because of conflicts of interest.
Of course, nevermind that the Bretton Woods system is no more, that there is very little in today's economic policy that is truly Keynesian, and that during the height of keynesianism there were no crisis like this one...