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Showing posts with the label Bretton Woods

Where does gold come from? Heavenly fireworks?

Most of the atoms in the world are either hydrogen or helium. Hydrogen, of course, is the simplest of atoms. One electron circling one proton.  The Ockham's razor of atoms.  Helium is what you get when a lot of hydrogen atoms are tightly compressed together in a star.  It is the consequence of the process of fusion in that context.  What about all the other elements? Most of them can be explained as themselves also the products of nuclear fusion in the stars, increasingly rare as they get heavier. But there are a few elements that scientists think require a more complicated explanation, and gold is one of these.  These problem elements are neutron heavy and they could only have come into existence in an environment that allows rapid neutron capture, known as "the r process." The usual theory has been, for decades now, that the r-process is created when neutron stars merge with each other, since a dense soup of neutrons, is the most plausible source for gold and ...

A World Bank head quits

  The Trump appointed head of the World Bank, David Malpass, has resigned.  For those who need a refresher: the head of the WB, a Bretton Woods institution, is appointed by the President of the United States because of a deal made at that 1944 conference. The head of its sister institution, the International Monetary Fund, is under the same deal always a European (chosen by the IMF's own executive board.)  Anyway: Malpass is leaving -- the reasons why are not obvious -- and his departure means that President Biden has an appointment opportunity he had not expected.  On Malpass' way out the door, I want to make one point about his earlier career as a business executive and economist. Malpass was the Chief Economist at Bear Stearns for six years. Those happened also to be the last six years of the existence of Bear Stearns as an independent entity. The post of Chief Economist disappeared when Bear was purchased by JPMorgan Chase in March 2008, as the Subprime Crisis of...

Churchill controversies

The website of BBC recently ran a list of the ten greatest continuing controversies about Winston Churchill. Personally, I was a bit surprised to find nothing about Bretton Woods there. Certainly Churchill's relationship to the Bretton Woods conference, of '44, which formally gave the US dollar the central place as the western world's currency, has been a matter of considerable controversy. I refer the reader doubtful on that point to THE BATTLE OF BRETTON WOODS, a recent offering of the Princeton University Press, which paints the conference itself as a dollar-versus-pound tug-of-war. Churchill either acceded to the lessened significance of the pound, or simply wasn't paying attention, and either fact is an important one. It is hard to believe that he wasn't paying attention. He had been closely associated with a gold standard earlier in his political career (a fact which also doesn't get into the BBC list), so it is possible he acceded to the supremac...