What is the underlying cause of the world financial crisis?
Per the WSJ, it was the breakdown of the postwar Bretton Woods monetary system and the unleashing of fiat currencies and central-bank printing presses.
In 1971, the Nixon administration killed the gold standard. In the early 1980’s, financial deregulation removed barriers to unlimited amounts of credit.
Uncle Sam went from a hard money regime to one where money became purely paper.
Today, there are no restrictions remaining on the power of governments to finance unlimited debt.
Banks can create credit seemingly without limit. Central banks have become the real power in the world economy.
So let’s go back to what worked — the Gold Standard.
DrCameronJackson@gmail.com
See The Vatican’s Monetary Wisdom by Robert A. Sirco in The Wall Street Journal, October 27, 2011
