Home > Tell the People > Archives > 2008 > November > 04 > Entry
Another Bretton Woods?
The November 15th G20 group economic summit in Washington is actually being spearheaded by the EU and the UK with President Bush sheepishly following behind. The capitalist ideology is on the ropes. The upcoming summit is being compared to the Bretton Woods summit of 1944, when industrialized nations gathered to reconstruct Europe after World War II and to remake the world’s monetary order after the Great Depression. Only this time, it’s the United States that’s created the contagion of the world markets by allowing Wall Street to peddle worthless notes guaranteed by our free spending government. The summit is being called for global regulatory discussion and China’s foreign currency reserves and their currency manipulation. They have phrased their currency manipulation as building a “socialist market economy”. They have invested heavily in US Treasuries to the tune of about $1.8 trillion in currency reserves as well as other European government securities, but are not a full fledged market economy so therefore have only pegged their currency to the dollar. So what is the real value of their renminbi? Regardless, China must be open to the multilateral world monetary system and establish a global currency exchange value rate that reflects their countries’ economic fundamentals and relinquish Western currency reserves if the capitalist system is to revive and resurrect itself. Thank you Bill Clinton for aggressively establishing trade with a communist country that views Western capitalism as a necessary system for economic reform but will not follow the West’s view on renminbi reform . What are your thoughts? Will communism control capitalism should China decide to not act in the best interest of the world’s economy?
Comments
By KG
November 6, 2008 3:54 PM | Link to this
Man this is deep, and it’s a world wide problem. This is haulting world wide trade, and drying up world markets, needing capital. I have never seen anything like this.