Indian Intellectual Vacuity – anchoring Bretton Woods III –
Let us pause here to reflect. The problems that the US and the rest of the world face today with credit destruction and crisis were caused by the “Bretton Woods II” exchange rate regime. In that regime, many countries kept their exchange rates in a quasi-peg to the dollar and lent to US households, which borrowed heavily. That has to be played out all over again for the bailout plan to work. In other words, the US is expecting to repeat Bretton Woods II to solve the problems created by Bretton Woods II. That does not sound like much of a solution but more like the creation of a new, bigger problem.
How will emerging nations respond? One must watch China. It anchored the Bretton Woods II regime.(anchoring Bretton Woods III – Views – livemint.com).
White Man’s Prize
The writer of this post, V. Anantha Nageswaran, (earlier mentioned as – Ramesh Ramanathan, who is actually the publisher), went to town recently because he had won some obscure prize given by the White Man. This award, he (and some others feel) qualifies them to write tripe like this.
Not once does he talk of an alternate currency system. Not once does he talk how India and China could partner a new currency bloc. Not once does he talk about the massive gold reserves which the Anglo Saxon Bloc had at the time of Bretton Woods in 1944 – which they do not have now.
He does not talk of oil – even once, which actually anchored Bretton Woods II.
It is pathetic!!
The 2ndlook model for a Third currency Bloc is ready. Join in to review, participate, critique and develop the First Cut. While the need for a new global reserve currency has been evident, there is very little in the public sphere. The speed of events has clearly caught the BRICS and Third World napping – and unprepared. But, not 2ndlook – who, from the very beginning, proposed that the world should stop clinging to the Dollar-Euro skirts.