The Death Certificate Of The Paper Dollar: Where To Next?
By Ralph Benko
The world dollar standard’s death certificate arrives in the mail this week. The Bank of England — “the Old Lady of Threadneedle Street” — one of the most staid, cautious, and dignified entities in the world of monetary policy — signals that the fiduciary currency standard ushered in on August 15, 1971 is, empirically measured, far inferior to the (dilute form of the) gold standard erected at Bretton Woods. Fellow Forbes.com columnist Charles Kadlec thoroughlyreprises and analyzes the facts submitted to a candid world by the Bank of England in a paper to be officially published December 20, 2011.
The Bank of England’s Financial Stability Paper No. 13, Reform of the International Monetary and Financial System, reported atBloomberg BusinessWeek and reviewed here, is being seen by many monetary policy observers around the world as the “coroner’s report” on the death of the world dollar standard.