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Financial Systems Reform And Gold

Financial Systems Reform And Gold Progressing states in the introduction to the United States and the European Union projects important proposals to their parliaments for the reform of the financial system in order to avoid financial crises economies similar to what happened in 2008 and that the global economy is still paying the price for its aftermath. There is no doubt that the reform and the emphasis on the application of rules and standards and the threat of sanctions on offending parties became necessary after the financial chaos that the world has witnessed in recent years, and the Altronix APP Scam expansion of internal and external debt of the countries of the level and lack of transparency in giving false information on the financial situation, even more economic blocs level progress such as the EU. But the extent to which countries will succeed in the implementation of these reforms? Will it be enough to prevent similar crises or perhaps more dangerous than the crisis occurred in 2008?


The implementation of these reforms may not be guaranteed unless the control of the source of the problem which is chaos in the money printing and pumped into the markets of charge, especially by countries that are international reserve currencies led by the United States. This pumping runaway currency in the markets and the rapid developments in the speed of movement of funds from one country to another creating an abundance of money lendable and encouraged States to external borrowing and interest rates attractive to its decline, and spending on aspects of useless do not give back, what accumulates the Copy Buffet Software Review volume of debt and debt service even fail states for repayment as in Greece.

Historically known that currencies of countries, particularly the international reserve currencies were linked to gold under what is known as economically as the gold standard. This Push Money APP means that exporting currency covered in gold held by central banks. Britain abandoned the gold standard in 1931 because of the consequences of the First World War and the changing global balance of forces is Britain’s interest. After decoding the pound sterling correlation with gold weakened confidence in him gradually as the currency of Thousand Dollar Days international reserves. After almost three decades, taking the dollar, which was associated with gold place, especially as it coincided with the growing strength of the US economic, political and military. In 1973 the United States effects of the dollar gold link to give the same freedom in the dollar version without restrictions to finance the Vietnam War.

A review of the monetary history of the countries in the aftermath of World War II, we find that Germany alone was able to control the money supply, which without being committed to the gold base. The reason for the ability of the power of the Bundesbank of Germany and independence full Zulander Hack independence from the government so that the latter can not borrow it from the currency by printing only a certain percentage can not be exceeded.

And in an unprecedented manner in another country, the independence of the Bundesbank enjoys unrivaled popular support because of what the German people suffered from excessive inflation rates has thrown millions of them their fortunes during World War II. Reducing popular support of the Binary Secret Review Central Bank and up to any disagreement between the latter and the government will prevail as the central, it caused controversy in many cases in overthrowing the government.

So maintained German currency (mark at the time) on the strength of the German economy grew at a healthy form of frequent and even became the third strongest economy in the world after the United States and Japan, after World War II completely destroyed. The German government has also followed a prudent fiscal policy, which did not borrow only for the purpose of WellsInvestments financing investment projects give a return shot just out of debt and debt service.

There is no doubt that the base gold advantages in controlling the volume of currency in circulation, but the outlet basically restricted by the policies of economic stimulus in times of recession. So after most countries abandoned the gold standard, some have resorted to the adoption of laws known remnants of the gold standard obliges the Central Bank of the State concerned to maintain cover a certain percentage of currency in circulation with gold.
But countries abandoned the gold standard waste laws gradually. But impressively that all developed and developing countries that abandoned the gold and remnants of the gold standard base saw then Wells Investments Scam critically and financially, caused a lot of waste, corruption and rising debt levels, inflation and financial crises.
If the return to the gold standard solution difficult to return to partial coverage of the gold coin that the United States will be the first who are committed to the reduction of the cash bleeding of the dollar, which hurt all over the world and promotes irresponsible borrowing may be.

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