The International Monetary Fund published a speech by Managing Director Kristalina Georgieva last week in which Georgieva called for “A New Bretton Woods Moment.”
The Bretton-Woods agreement was signed on to by 730 delegates from 44 Allied nations in 1944. It basically set up the world’s post-WWII financial system.
The article published last week caused concern among many financial experts that a big change is coming – possibly a great financial reset. Economists, analysts, and bitcoiners have been discussing the IMF managing director’s speech since it was published on the IMF website on Oct. 15.
Willem Middelkoop, author of the The Big Reset, believes there is a big reset coming. He writes:
Two major problems in the world’s financial system have to be addressed: 1) the demise of the U.S. dollar as the world’s reserve currency, and 2) the almost uncontrollable growth in debts and in central banks’ balance sheets. For all of these issues, central banks have only been buying time since the start of the credit crisis in 2007. But given how sensitive this issue is, nothing can be said in public. Any official comments about a new ‘Plan B’ will crash financial markets (Plan A) immediately. Central planners know the only way to plan a reset is to do it in total secrecy.
Georgieva couched her big reset in terms of building a better economy for the entire world – post the Covid19 pandemic.
“We face what I have called a Long Ascent for the global economy: a climb that will be difficult, uneven, uncertain—and prone to setbacks.”
“But it is a climb up. And we will have a chance to address some persistent problems — low productivity, slow growth, high inequalities, a looming climate crisis. We can do better than build back the pre-pandemic world – we can build forward to a world that is more resilient, sustainable, and inclusive.”
“We must seize this new Bretton Woods moment…Our founders did it. It is now our turn. This is our moment!” she concludes by saying.