Where did this financial turbulence come from?
How the subprime debacle got started and where it might end up. The most recent iteration of America’s economic system has its roots in a small meeting in Bretton Woods, NH, in 1944. The hope – and assumption – that developed during that meeting was that out of the victory of World War II, a single global trade and economic supremacy (potentially a nation state) would emerge, ending fascism and all other “isms”. In this meeting, there was an assent to certain financial dynamics, particularly an assent to the gold standard.
Fast forward to August, 1971. Facing many new economic hardships, the emergence of credible international technical and industrial competition, and unprecedented capital calls on the U.S. Treasury, the United Stated decided to supplant its previously established economic ground rules. Today, we have forgotten what happened in 1971.
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Email to a friend.Published: August 18, 2008
By: Ajay Shah
This article is filed under:
Business | Conversational Media
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