WASHINGTON — President Bush has invited the leaders of 20 nations to come to Washington on Nov. 15 for an international summit meeting on the economy, the White House said Wednesday. The move could eventually lead to a far-reaching overhaul of the rules governing global financial markets.
The likely result of this will be more regulation when what we need is a new currency system and better regulations. Piling more regulations on top of the ones that already failed will only make things worse. This conference is being compared to the Bretton Woods conference after WWII:
Mr. Bush has been under intense pressure for several weeks from leaders in Europe, especially President Nicolas Sarkozy of France, to convene an international meeting of economic powers to address the financial crisis. Mr. Sarkozy has called for strengthening and rewriting the rules governing global financial institutions, fashioned after the 1944 meeting in Bretton Woods, N.H., in which 44 nations remade the global financial system after the Great Depression.
The main reform that came out of Bretton Woods was a new currency system where the dollar was backed by gold and other currencies were pegged to the dollar. It wasn’t perfect but it provided many years of stability. The problem with this conference is that I haven’t heard anyone even discuss changing the floating currency regime and I probably won’t. A gold standard is too limiting for the ever expanding ambitions of politicians.