I mentioned yesterday that we would begin seeing comments relating to how this financial crisis would need to be solved ‘globally’. It’s already starting. This is an article by Chris Martenson posted this morning.
John – Oct 10, 2008
Berlusconi Says Leaders May Close World’s Markets
Friday, October 10, 2008, 12:15 pm, by cmartenson
An interesting bit of news:
Oct. 10 (Bloomberg) — Italian Prime Minister Silvio Berlusconi said political leaders are discussing the idea of closing the world’s financial markets while they “rewrite the rules of international finance.”
“The idea of suspending the markets for the time it takes to rewrite the rules is being discussed,” Berlusconi said today after a Cabinet meeting in Naples, Italy. A solution to the financial crisis “can’t just be for one country, or even just for Europe, but global.”
The really interesting part is here where he hints that a second aim is to revisit the Bretton Woods agreement.
Translation: The US dollar’s role as the world’s reserve currency is up for debate.
Berlusconi didn’t give any details about what kind of rules leaders were looking to change, except to say that leaders are “talking about a new Bretton Woods.”
The Bretton Woods Agreements were adopted to rebuild the international economic system after World War II in a hotel in Bretton Woods, New Hampshire. The aim of the agreements was to establish a monetary management system, initially by pegging currencies to gold. The IMF was set up later to help manage the international financial system.