“Financial reform for a sustainable economy”: Part 3 Bernard Lietae: “Effiency is not everything” or: HOW BAD MUST THE CRISIS GET BEFORE YOU CHANGE YOUR WAY OF BELIEVE.
first of all: do you know what gives the current fiat-money it’s value? because people WORK for it. If NOBODY would work for DOLLAR or EURO it’s value would be ZERO. Money should be created by everybody – when needed – NO DEBTS! NO MORE!
Bernard Lietaer is definately right – but the problem is the same for the IT-guy telling his boss that:
- he should not throw away the old-analog-telephone because if there is a power-outage… no phone, except the old analogue phone on an analogue land-line will work (because it get’s it’s power from the central-telefone-station… not from a 110-220v plug)
- he needs to spend 3000€/USD on a box that protects his business network from threats from outside.
- he needs to spend another 3000€/USD on improving the backup-system.
… well guess what his boss will say: “WELL… IT WORKED UNTIL NOW… SO WHY SHOULD IT FAIL LATER?” 😀 Ignorance is NOT BLISS – it is stupid – but it saves money in the short term.
“Financial reform for a sustainable economy”: Part 2: Michael Kumhof
“Financial reform for a sustainable economy” : Part 4 Pavan Sukhdev or: Why India was not really affected by the 2007/2008 Suprime-Crisis
They had implemented at least half of the Bretton-Woods money-reform proposals.
The Bretton Woods system after the 2008 crisis
In the wake of the Global financial crisis of 2008, policymakers and others have called for a new international monetary system that some of them also dub Bretton Woods II. On the other side, this crisis has revived the debate about Bretton Woods II.[Notes 5]
On 24–25 September 2009 US President Obama hosted the G20 in Pittsburgh. A realignment of currency exchange rates was proposed. This meeting’s policy outcome could be known as the Pittsburgh Agreement of 2009, where deficit nations may devalue their currencies and surplus nations may revalue theirs upward.
In March 2010, Prime Minister Papandreou of Greece wrote an op-ed in the International Herald Tribune, in which he said, “Democratic governments worldwide must establish a new global financial architecture, as bold in its own way as Bretton Woods, as bold as the creation of the European Community and European Monetary Union. And we need it fast.” In interviews coinciding with his meeting with President Obama, he indicated that Obama would raise the issue of new regulations for the international financial markets at the next G20 meetings in June and November 2010.
Over the course of the crisis, the IMF progressively relaxed its stance on “free-market” principles such as its guidance against using capital controls. In 2011, the IMF’s managing director Dominique Strauss-Kahn stated that boosting employment and equity “must be placed at the heart” of the IMF’s policy agenda. The World Bank indicated a switch towards greater emphases on job creation.
However, Deutsche Bank’s Sanjeev Sanyal has argued that the insistence on global balance is fundamentally flawed and that sustained economic growth has always relied on symbiotic imbalances. This means that the world will eventually have to accept a return to new period of imbalance that he calls Bretton Woods III.