r garg post

Till 1971 , BIS IMF WTO eg CABAL  were on gold backing plus fixed exchange rates ....

From 1971 onwards  BIS etc are on non gold backing ..
maybe ..all 195 or so countries are   backed by  USA treasuries bonds bills .. ,
and mostly flexible Exchange Rates ER eg india Russia , with few countries independently choosing pegged ER eg china , with manipulative pressures by IMF eg japan via plaza accord.

To get back to same system .. The system from 45 to 71 was gold based and managed by usa .

The post 1971 system , some call it bretton woods 2 or jamaica 1972 system ..
This is really shit
With bold blatant usa hegemony .
For pedagogy , there were2 parts ,  and now 3 parts of jamaica72 system
1. Usa uk eec japan
2.china separate part from 1980 s onwards
3.all other nations , india Russia brazil  and about 190 others
Earlier when china s exports were small ,china was part of all other nations.

Part 1 nations , uk usa are predators . eec japan export surplus plus free capital movement .usa can issue bank loans without restriction , uk with strict approval by usa only when uk begs , eec and japan can issue bank loans with us approved m1 m2 etc m being multiple of the usa t bonds purchased by individual nation n1 n2 etc

China can issue bank loans as above , note it has HUGE usa t bonds 4 trillion dlrs , china i think has capital movement restrictions ..i am not sure

Most of Other 190 nations have very nominal net export capability ,  their trade imbalance is tightly restricted by that nations usa t bond holdings . i think all or most of this 190 group has severe restrictions on capital movement .  these countries ability to issue money M3 via bank loans or via deficit financing is also very tightly and blatantly though discreetly . M3 may be needed for infrastructure or for wars or for speculative activity . in india lot of this M3 is used for property mortgage loans . for more needed M3 these 190 nations have to beg for loans with imf conditions from imf or from banks in part1 4 nations .

Ha ha

Eco 103