Is a New Bretton Woods required to stop countries around the world from outspending their ability to produce?

Economics Political Theory
1

America and Britain, anyone?

2

Wait a moment, Bretton Woods gave the USA the ability to outspend their ability to produce. ¿How would a Bretton Woods II stop it?

3

Countries in the Bretton Woods monetary system were tied to the gold standard, which Nixon broke from and to be competitive, subsequently most monies are floating now.

4

No. Some party would just ignore it and everybody else would follow. Remember “We’re all Keynesians now!!!”. There were two flaws in Bretton Woods, the first moral and the second technical. The moral flaw was that government to keep the gold prices stable had to restrict who could own gold because gold owners would transact in the Gray or Black markets and bid up prices. The technical flaw was the concept that government could control itself when it comes to creating new money and credit.

The only solution is to the get the Government out of the determination of what is money and determining its value. Market processes should determine these things. There is a high probability that the markets around the world will use the old standards of Gold, Silver and Copper as money.

5

Bretton Woods was a pseudo paper-gold standar.

First, it was a pseudo standar because only countries were allowed to change their dollar bills for gold, not individual citizens. This way there was a lot less oversight over a posible abuse of the system.

Second, I call it a paper-gold standar because it was really a dollar standar. The dollar was supposedly backed by gold, but it was in control of the USA. There was not competition between other difuiciary currencies or anything else. And as was easily predictable, the USA started printing more than it should. At the end of the 40’s, just some years after Bretton Woods was signed, Saudi Arabia had problems changing dollars for gold at $35/onze, so the USA government coined a special gold coin only to pay them.

Bretton Woods was obviusly a flawed design, and if you ask me its quite clear that it was designed to spread the paper dollar all over the world under the excuse that it was backed by gold.