delegation at the bretton woods conference. mr.nstein, what did the delegates who assemble to accomplish at bretton woods? we hadwo different objectives. one was to get monetary stability without the rigidity of the gold standard. the other was to prevent a recurrence of the disorders -- deflation and the depression -- that followed the first world war. we hoped we could get through a reconstrucon period where europe would once again be a great producer. we hoped that we could establish a world trading system in which all could share in prosperity. and we wanted stability. schoumacher: to ensure stability, the etton woods agreements outlined a new system of international cooperation. the linchpin of the system was the american dolla and its convertibilityo gold. europe was either occupied or had been conquered, anevery country in europe needed resources -- it needed to restock it needed food. and of course, it had to be reconstcted. we were the only country that had the real resources to spare for tt. and of course, you'd have to b

we were not playing by the rules with the bretton woods system at $35 an ounce. nixon was worried about reelection in the economy was not responding quickly enough so the theory was out there it would boost the economy in for one year they put in wage price controls then the economy crashed so it was bad intellectual theory but not their real crisis any of the economic problems were small compared to the crisis we had in the past there was no sensible reason to do its with that industrial use of gold it is a small fraction and reusing less we don't use it anymore for fillings once upon a time we had gold and silver. so for most gold is for store of value and ornament but nothing to do say we need all 5.5 billion dances for industrial use it is too valuable to use we found cheaper and better ways to fix our teeth. any other questions? if not, thank you very much and we will go to the book signing. thank >> thank you for coming i want to start by explaining why i have the pleasure to interview michael is and i would direct your attention to the dust jacket, the bac

even though he had booming decades in the 80s and 90s, overall our growth rate since we went off the bretton woods system in 1971 , the us average growth rates are less than they were before 1971. if we had maintained by growth rates that we had for 180 years up until 1971 on average the us economy today would be 50 percent larger than it is now. forty years compounding and in effect reversed compounding adds up to a lot. favor for a moment having 50 percent higher income, would it mean for the social divisions. this thing, overturned, adds up. it is a critical reason why it takes to incomes in the family to do what one could in previous generations. the debasement of the dollar is a critical part, and when this happens, happens, when you do not have a stable currency you end up with people not getting ahead the way that they should, meaning incomes are not growing annoyed that they should and as my co-author will discuss in a few minutes, a fraying of social fabric, reduction of social trust and more divisions. and it is a process that process that not one in a million will be able to diagn

even though we had booming decades in the 80s and 90s overall our growth rates since we went off the bretton woods system the old gold standard in 1971 the u.s. average growth rates are less than they were before 1971. if we maintain the growth rates that we had for 180 years up to 1971, if we maintain those growth rates after 1971 on average the u.s. economy today would be 50% larger than it is now. 40 years compounding, in fact reverse compounding adds up to a lot. saber for a moment having 50% higher incomes and what it would mean for the deficit, what it would mean for social security, what it would mean for a lot of the social conditions today. this thing over time adds up. it's a critical reason why it takes two incomes in the family to do what one income could do in previous generations. obviously taxes are large part of it but the debasement of the dollar since the 70s is a part of it as well. when this happens, when they don't have a stable currency unit up with people not getting ahead the way they should. median income has not grown the way it should and leading as my co-author el

post-bretton woods the u.s. becomes the center of international finance.this arrangement worked up until 1967 when charles degaulle set timeout. we want our goal. here is the u.s. dollar. gold bars are flying back to paris. as the speculators took notice and there were some onslaught on the u.s. dollar. what did nixon do? he closed the gold window on august 15, 1971. the same time u.s. funds up in the major oil predicament. it was importing over 70% of the oil it consumes and it happened to be from the middle east. we all know about that airport a crisis in the early 70's. nixon had the dilemma that he came up with a solution. kissinger, henry kissinger who i actually think is a great book out, the world order, he also came out and said we are on the verge of the cold war. they needed to secure a demand for the u.s. dollar but also secure the supply of oil to the united states. so nixon sent kissinger to saudi arabia. kissinger set up what women now know as the u.s. picture dolly. what did they do hear? saudi arabia would we reinvest the surplus profits in

even though we had booming decades in the 80s and 90s overall our growth rates since we went off the bretton woods system the old gold standard in 1971 the u.s. average growth rates are less than they were before 1971. if we maintain the growth rates that we had for 180 years up to 1971, if we maintain those growth rates after 1971 on average the u.s. economy today would be 50% larger than it is now. 40 years compounding, in fact reverse compounding adds up to a lot. saber for a moment having 50% higher incomes and what it would mean for the deficit, what it would mean for social security, what it would mean for a lot of the social conditions today. this thing over time adds up. it's a critical reason why it takes two incomes in the family to do what one income could do in previous generations. obviously taxes are large part of it but the debasement of the dollar since the 70s is a part of it as well. when this happens, when they don't have a stable currency unit up with people not getting ahead the way they should. median income has not grown the way it should and leading as my co-author el