Specialising in the human experience of Living with prostate cancer – warts and all

The ‘gold standard’ needs to be revived

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Lets get back to the gold standard through Bretton Woods II

Bring back the gold standard through Bretton Woods II

As a blogger, one gets press releases from all sorts of interest groups. For years, I have received releases from the CEC (Citizens Electoral Council), an Australian registered political party headed up internationally by the ultra conservative Lyndon H LaRouche.

Since 2001, the CEC have been warning of this financial crisis and have promoted a new “Bretton Woods” accord to manage the global ecomomy. They even have a book titled What Australia Must Do to Survive the Depression.

Mainstream politics has dismissed LaRouche, the CEC, and their ideas as being in the ‘nut case’ basket along with the dreams of Pauline Hanson.

However, the British PM, Gordon Brown, this week called for a “new Bretton Woods,” to overhaul the world economic order.  His called was rapidly followed by a European call for ‘Bretton Woods II’.

Essentially, it means that the Chinese and other Asian economies would run large trade surpluses and fund the corresponding U.S. trade deficits by buying Treasury bonds – in effect lending them the money to finance their overconsumption.  Further explanation here.

I have no idea how the proposed CEC “Bretton Woods” plan is designed but they must be given credit for their persistance over the last seven years.  Are they to be the new conservative right in Australian politics?

THE ORIGINAL Bretton Woods was centered on the US dollar-Gold Fix, from where all other currencies were fixed to the US dollar, gold thus supposedly functioned as the main adjustment mechanism or as the “natural discipline” of the erstwhile financial structure until of course it had been abused and closed.

Yet, suddenly we notice a sharp pick up on gold priced in several currencies….


Written by Greg Naylor

16 October 2008 at 10:17 pm

Posted in media release

Tagged with ,

2 Responses

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  1. Hello. As far as I understand the increase in price of gold is linked to it being a commodity that people run to in times of crisis – in this case I think the price increase started as the US subprime problems were kicking off. The gold value increase is thus, in my view, not linked to the political speculations of the need to bring back the gold standard…


    16 October 2008 at 10:58 pm

  2. How long before the rest of the world realises that this is primarly America’s problem and we don’t have to help them out? I’d say we’ll wake up within 2 or 3 months and realise our own economies and banks are just fine and we’ll just get on with it. America has to pay the price, not the rest of the world.


    17 October 2008 at 11:33 pm

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