The Bretton Woods CommitteePosted: October 24, 2011
The official statement by this committee is: The Bretton Woods Committee is a bipartisan, nonprofit group organized to increase public understanding of international financial and development issues and the role of the Bretton Woods institutions — The International Monetary Fund, The World Bank, and the regional development banks — in the global economy.
The game began at an international meeting of financiers, politicians, and theoreticians held in July of 1944 at the Mount Washington Hotel in Bretton Woods, New Hampshire (named after its hotel like the Bilderberg Group to hide its intentions). Officially, it was called the United Nations Monetary and Financial Conference, but is generally reffered to today as simply Bretton Woods Conference. Two international agencise were created at that meeting: the International Monetary Fund and its sister organization, the International Bank for Reconstruction and Development commonly called the World Bank.
The announced purposes of these organizations were admirable. The World Bank was to make loans to war-torn and underdeveloped nations so they could build stronger economies. The International Monetary Fund (IMF) was to promote monetary cooperation between nations by maintaining fixed exchange rates between currencies. But the method by which these goals were to be achieved was less admirable. It was to terminate the use of gold as the basis of international currency exchange and replace it with a politically manipulated paper standard. In other words, it was to allow governments to escape the discipline of gold so they could create money out of nothing without paying the penalty of having their currencies drop in value on world markets.
Prior to this conference, currencies were exchanegd in terms of their gold value, and the arrangement was called the “gold-exchange standard“. This is not the same as the “gold-standard” in which currency is backed by gold. It is merely that the exchange ratios of the various currencies – most of which were not backed by gold – were determined by how much gold they could buy in the open market. Their values, therefore, were set by supply and demand. Politicians and bankers hated teh arrangement, because it was beyond their ability to manipulate. In the Past, it had served as a remarkably efficient mechanism but it was a strict disciplinarian.
The method by which this was to be accomplished was exactly the method devised on Jekyl Island to allow american banks to create money out of nothing without paying the penalty of having their currencies devalued by other banks. It was the establishment of a world central bank, which would create a common fiat money for all nations and then require them to inflate together at the same rate. There was a kind of international insurance fund, which would rush that fiat money to any nationa that temporarily needed it to face down a ‘run’ on its currency.