What we are experiencing is the end of the bretton woods agreement and capital structure implemented following WW2.
Global financial underpinnings and monetary policy were established to setup predictable currency values, pegged to gold and ultimately the US $. How much is 1 franc, 1 Mark, or 1 pound? Compare it to the $. How do we know how much a $ is? Because 1$ is backed by x amount of gold.
Fast forward through 3 energy shocks, delinking from the gold standard in 1972, the $ now competes with all currency values in free float. 4 wars, a shrinking mft and textile base, the rise of trade imbalances, the following budget deficits, the insatiable spending and military appetite and you find yourself 60 plus years later nearing the end game of the bretton woods financial structure.
The US once centered as the base denominator and reserve currency in global monetary, once devalued, the seeds of the end began.
We now spend far more than we produce, or save. Our economic growth is largely based upon consumption. We borrow to consume, we finance to drive growth, and this economic engine - the engine of US consumption is now reaching its limits. The system has toppled, top heavy with debt, built on an economic foundation parted and parsed, scattered throughout the world.
What is the next engine?
What shape the next gobal economic structure? Soros says energy - the green kind.
The beauty and the power of market principles is that it rewards innovation, function, and value; the development of new markets. To be sure entrpreneurial risks are now required ... as that is the only authentic sustaining growth principle.
The rest is a financial rentier economy where innovation is wasted on developing legal structures, military, and power to enforce the profits of the status quo.
power thunderwhores don't lead, they protect.
New investment, research and design, new economy: develop where we need to go, not where we have been... develop for the future and not the past.
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