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Italian Economist Antonino Galloni
Calls for a New Bretton Woods

Aug. 23, 207 (EIRNS)—Italian economist Antonino Galloni has released a statement to EIR, in which he says that "the current financial turbulences are only a foretaste of what awaits us starting next autumn." The system, Galloni goes on, "is characterized by an evident excess of liquidity in speculative sectors, such as derivatives and hedge funds, and by a lack of capital for investments."

Currently, in the world, "the mass of circulating financial means in the form of unpayable credits is thirty times the value of the yearly production of the world's nations. Central banks can think to protect, through their resources, the savings in their own country, but if the crisis is global they have no means to build a dam. This potential insolvency, bad debts and similar things are managed through the creation, each time, of more and more junk paper, that still finds purchasers in people blinded by the possibility of easy and huge gains, swindled by their financial advisors and brokers."

"In my view," Galloni concludes, "the only chance to avoid a collapse at the end of Autumn, which can disrupt the real economy, is to dedicate the next two years — within which the decisive crisis will unfold — to create a new Bretton Woods that succeeds in transforming pseudo-monetary paper assets, into long-term obligations to finance large planetary infrastructure and an economic recovery. Only in this way, by exploiting the potential of the planet for development, is it possible to transform the current, dangerous and speculative pseudo-currency, in assets that correspond to the value of world production in ten or twenty years."