The Economist Ponders What Will Come After the Present Monetary System

• The Economist Ponders What Will Come After the Present Monetary System
  by https://lonestarwhitehouse.blogspot.com/
  It seems that the primary focus of this blog, watching for major changes in the present monetary system, is no longer just a non mainstream media activity. The very mainstream Economist runs this article wondering how much longer the present system can hold together and what is going to eventually replace it. Below are a couple of excerpts and then some added comments.
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  HISTORY REPEATS
  “A minimally disruptive end to Bretton Woods II remains within the realms of possibility. Its fate might resemble that of Bretton Woods I, especially if Mr Trump loses office in 2020. Democrats are more economically nationalistic than they used to be, but still mindful of the value of global co-operation. President Bernie Sanders or Elizabeth Warren might seek a one-off depreciation of the dollar while recommitting America to a rules-based system of global trade. A recession in China could scare its leadership into offering concessions on trade that America would accept.
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  But the experience of the 1930s may prove a more apt guide. In the absence of a co-ordinated adjustment to exchange rates and a peaceful end to trade hostilities, the world could stumble into a cycle of competitive devaluations and tariff rises. As trading relationships unravel, countries may organise themselves into rival economic blocs. It is hard to imagine the world repeating such an ugly era of history. But not as hard as it used to be.”
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  My added comments: I am struck by how much the last paragraph quoted above sounds like something Jim Rickards would say. If you have followed these issues for a long time, you realize that the world is simply moving in an unpredictable fashion in ways that what we might call “the establishment” never likely imagined possible not too long ago.
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  The political landscape has been significantly altered in the last 3-4 years such that it now seems more likely that the world is moving in this direction stated in the article above:
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  “In the absence of a co-ordinated adjustment to exchange rates and a peaceful end to trade hostilities, the world could stumble into a cycle of competitive devaluations and tariff rises. As trading relationships unravel, countries may organise themselves into rival economic blocs.”
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  A few years back we talked about this being one of the very real potential outcomes back in a time when many were expecting some kind of a new one world global currency issued by some kind of global central bank to be the future. Now, that seems like a very remote possibility any time soon as achieving any kind of political consensus nationally or globally has disappeared.  
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  read more.

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