I don't know about everyone else but when I hear that the Italian Prime Minister is talking about closing the world's market, I get a little nervous. The suspension of world market trading would give international leaders an opportunity to "rewrite the rules of international finance." Ummmm...say what?
The establishment of new rules would echo those of 1944 and the Bretton Woods Agreements. Bretton Woods established exchange rates for all currencies around the world by using the gold standard. Later, the International Monetary Fund handled the exchange rates for international currencies.
A lot has changed since 1945 and the development of Bretton Woods. Obviously a conference probably needs to take place but, honestly, I don't trust the world market at this point to actually solve the problem. To rewrite the rules of international finance, people would have to be somewhat selfless and compromising. I don't know if we live in a world of such character. Additionally, a fully powerful nation must be willing to lead...does anyone trust the United States now to be that leader? And will the US take a backseat and allow anyone else to be that leader? Chances are the answer is no to both...at least at the moment. Eventually, yes...the US will lead becuase, despite it all, the US economy remains the most stable in the world. It's just too soon for everyone else to realize that now...
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