Originally Posted by
blackjack21trader
Until the 1970s, amount of currency in our World was limited by the quantity of gold. This is because in pre-70s, the US$ was pegged to the gold value. During that era, there were few advanced economies like Japan or Hong Kong in Asia. As a matter of factly, there were more under developed economies than developed economies. This system placed a limit on the advancement of technology and the growth in GDP in general. Because there were only such limited amount of US$ allowed in the global system. If you are discerning enough, you would realise the World did not make much advancement in computer technology until after the 70s. And herein lies the answer to this article I am going to enlighten you.
After the termination of US$ against gold, it means that gold is no longer a form of currency limiter. This gave the Central Banks much power to print paper currency. This is good as it removed the cap or limit on the amount of growth of GDP and also the research on the advancement of technologies. From the 70s till 2008, we saw remarkable progress in GDPs of emerging economies all around the globe. Standard of livings was increasing at a rapid rate in economies like China and India. If ever the US$ was still pegged to gold, this would not have happened. And how so ? Simply because there will not be enough US$ to circulate among these emerging economies. This is the arrival of the New Era: Post Bretton Woods.
So, after understanding correctly the function of liquidity in a global system, it would not be difficult to see what will happen next: The Arrival of the Golden Era...2012-2015. Which, I shall continue to explain in further details what is going to happen and describe what is the likely scenario in my next writeup.
To be Continued.
神龙股侠。
nil sine labore!