How does the financial system work

From the abandonment of the gold standard in 1971 and the appearance of the fiduciary money the financial system has been growing blindly flooding all the stages they were putting themselves him ahead.

The excess of (petro) dollars in the 70s flooded Latin America generating an important economic boom that preceded the crises of the debt of the 80. Later Japan achieved a commercial surplus as one had not seen until now, that it was allowed him to supply of dollars and this way to create a real estate bubble that has had nearly one decade in recession during the 90. Later this bag of "idle" dollars they went to the east Asian and there supervened the ascent and destruction of the Asian miracle. All these cases have taken the excessive inflow of exogenous dollars as a cause to his economies. At present we are in the bubble of the mortgages subgive priority that it has ended in the global crisis. The history of never finishing.

What we must get out is that a system based on fiduciary money (that is not anchored to any boss) never generates the same lasting prosperity as a system based on a currency that he answers to the real wealth (be the gold standard or any other).

The dollar and the gold, today

At present, the dollar is in one of his minimal values changing concerning euro and a half. In the middle of this descending spiral the federal reservation seems not to have maneuver margin great and there are already different the countries that consider “to leave” of the dollar to support the price of his assets, what there begins to make be in danger the supremacy of the dollar as world currency. This would make stagger the foundations of the current capitalism and he might suppose a long and painful depression if measures are not taken on time. This deterioration of of the dollar has provoked the suspicion of those investing (speculators) who have gone for the most part towards the gold, which is always a big value I shelter in crisis times.

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