The Financial Times publishes this article calling for a great reset of the present monetary system. Just about every issue raised in this article has been covered here for years, so there is nothing new or surprising in the article for readers here. Below is a brief summary of bullet points from the article and then an added comment.
- On average monetary systems last 35-40 years before a new system is required
- The Bretton Woods system based on the gold standard broke down in the 1970's
- The replacement system based on an unanchored US dollar has "reached the end of its usefulness"
- The current system is plagued by a 30-year debt super cycle and "unending liquidity created by commercial and central banks"
- The massive increase in mortgage debt has driven up housing prices and contributed to income inequality
- Now is a good time to devise a new monetary system to replace the current one
- Included should be "widespread debt cancellation" and perhaps even a "debt jubilee"
- Policymakers should negotiate some form of "anchor" to the currency or currencies
- The easy money policies of the present system have created asset bubbles that are not sustainable
- Growth should become less reliant on debt creation and more on productivity and innovation
- A new monetary system with an anchor and not based on ever expanding debt can restore fairness