Tremonti: New Bretton Woods is Key Proposal in My Book

11 de marzo de 2008

March 11, 2008 (LPAC)--Former Italian Finance Minister Giulio Tremonti's call for a New Bretton Woods has become the headline story in at least a dozen websites in Italy as of today, based on an interview Tremonti gave to Italyglobalnation, a service run by the national press agency ADN-Kronos, entirely focussed on the new Bretton Woods. Ign's headline reads: "Tremonti: a global agreement to avert the crisis - The former Economics Minister to Ign: `We need a new Bretton Woods. We must govern globalization with new instruments if we do not want to be overrun.' (...)."

"A new global agreement like the one in Bretton Woods 1944, an attempt to establish a world government architecture to govern globalization after a decade in which ‘the economy ran politics’. This is Giulio Tremonti's recipe for facing the economic crisis which is arriving in Europe."

Tremonti is reported as saying that the responsibility for the crisis is to be found "in a comprehensive structure that started from the world of culture and ideas, that produced the ideological motor of this whole process. Those who built their fortunes on an ideology such as that based on the market, now find that the crisis comes from the very depths of the economy, from America, from the financial structure of the economy."

Speaking of his new book Fear and Hope, Tremonti says: "The key proposal in the book is the proposal for a new Bretton Woods, that is, a new global agreement on the terms of currency exchange and trade. This is exactly the opposite of anti-globalization [i.e. Tremonti is not against "global" trade, he wants to save it from the crisis -ed.], is the opposite of a chain of errors that would lead to a crisis which I want to avert with instruments for governing globalization. In 1944, in New Hampshire, those responsible for politics and economics in the world agreed on some issues that remained in place for half a century. This is what I believe we must do: understand that the crisis is not banal, but fundamental; it is not conjunctural but structural."

Interest rate cuts and tax cuts do not have "great effects on the current crisis. Liquidity injections are not a radical cure; it is a counterproductive way of keeping sick people alive. Now, I believe that we need new instruments. The paradigm has changed... it is fundamental that we understand the intensity of the crisis and change the paradigm to avoid it: Bretton Woods."

Readers familiar with Lyndon LaRouche's proposal for a New Bretton Woods, of which there are many in Italy, where the parliament has twice passed resolutions in favor of such financial reorganization, will recognize his influence in Tremonti's proposals.