Who will save the world economy? – The world economy has still not recovered from the 2008 crisis. It has been faltering since then and has only remained standing with a great deal of “monetary easing” (in other words, printing presses ). The new crisis due to the coronavirus is likely to drive the point home, and the question of a major monetary reset à la Bretton Woods arises.
A pivotal moment for the global economy
The Bretton Woods agreements were concluded in July 1944, when the world and its economy had just chained the First and Second World Wars in a few decades , with the Great Depression of the 1930s between the two.
The old gold standard (or gold standard) was then backed by the US dollar , which then began to become the world reference currency . The fixed parity was 35 dollars for an ounce of gold (31.1 g). These agreements also saw the creation of the International Monetary Fund (IMF).
It was IMF Managing Director Kristalina Georgieva who called on world leaders to gather around a table to discuss a major new economic agreement:
“How can we seize this situation similar to that of Crypto Engine to move forward towards a better world after the pandemic? (…) We are faced with 2 major tasks: fighting the crisis today and building a better future. “
A real question, but a bad solution in prospect?
Unfortunately, the director of the IMF does not even consider the end of fiat currencies based on the sole confidence in their issuing states. No return to a healthy currency therefore, as in the old gold standard , where the precious metal was not printable at will , just like Bitcoin (BTC) today, with its fixed quantity of units – 21 million and not one more.
For Kristalina Georgieva, it is above all a question of ever more economic stimuli and investments in various fields. We just wonder where all this magic money is coming from .
Obviously, if high inflation ends up being triggered because of all these monetary impressions, it will have a significant impact on assets perceived as safe havens .