Nutshell economics [View All]

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In 1971 The Nixon Administration ended the Roosevelt Bretton Woods System of fixed currency exchanged rates. That then led to taking us off the Gold rate exchange standard. Then the in the money supply was free to grow thru unregulated credit generation. The financial banks to built up a wall of dollars, the exchange rates were floated, leading to the growth of unregulated off-shore hedge funds and derivatives markets. Is is like money which could have gone into infrastructure development which leds to real material capital growth and economic health was drained away into a financial shell game, money was moved around without the creation of new products and the debt on that money built up so that more money needed to be injected by the FED or squeezed out of the working economy to pay for it. Squeezed out thru leveraged buy-outs, dismantling and selling off of a company's parts. The transfer of industrial production to cheap production countries.