A look at how we went from the Bretton Woods system of gold-backed U.S. dollars to the Federal Reserve's QE Infinity of today.
QE infinity from the Fed. Corporate bailouts. Nudgin' UBI. The incredible economic phenomena going on now didn’t happen out of the blue. They are the byproducts of key events spread across the 70-year history of the U.S. dollar-led global monetary system.
Luke Gromen is the founder of Forest From The Trees, a macro/thematic research firm. In this episode, Luke provides a TL;DR on those key events that got us to where we are today, including:
- Bretton Woods and why the world went on a USD-based system rather than John Maynard Keynes' idea for a non-sovereign "bancor" world reserve currency
- The move to the petrodollar in the 1970s
- The financialization of commodities that started in the 1980s
- The monetary policy vacuum after the Cold War ended
- How a shift in executive compensation rules led to many of today’s problems with Wall Street
- The export of Treasury bills as a business model
- The fallout of 2008 globally and domestically
- The end of Treasury bill buying in 2014
- Why the Fed is the only sugar daddy left
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.