Bretton Woods collapse

Lusitania

Donor
The Bretton Woods system was setup at end of WW2 to regulate the exchange rate of the free world economies. The exchange rate between the various countries was fixed to the USD and the USD was fixed to gold price. In the 1960s the Bretton Woods system came under pressure finally collapsing in the 1971.

What would take for the Bretton Woods to collapse earlier say 1965?
 
In very simplistic terms the root problem post-Great War was the imbalance of gold held by the USA, pre-war the major economies were equivalent in their holdings but post-war the USA held almost as much as the UK, France and Germany, with Russia now off-line too. Thus to make gold work the USA needed to run a trade deficit and outflow gold, importing from Europe and creating a parity that would restore global trade flows. The USA instead horded the gold as if it was of value and things got worse under FDR who upped the purchase price from $20 to $35/ounce, creating another inflow and destroying gold as a medium of international trade. Bretton Woods formalized this and simply masked the gold horde behind the Dollar as its substitute. The free float finally putting us back to a working medium to exchange goods or services in different monies. Thus I suggest attacking the gold reserve, its pricing, the ability to keep Dollars in lieu of gold or any agreement at all, these will alter the "gold standard" and shorten the Dollar as the de facto gold currency. I did this with my altered Great War, the USA unhinging the gold standard and breaking it under a similar gold price change but with a German led Euro-bloc and surviving Sterling zone the USA cannot get to Bretton Woods, gold becomes useless with the USA holding too much sterilized, so the free float comes earlier. Global trade stays sticky behind protection barriers and high tariffs, but the opposing trade zones are closer in size, eventually weakening the barriers and revitalizing trade based on currency exchanges, maybe, a big maybe, getting gold as the common peg, the USA strength edging Dollars in as the neutral currency, something central bankers likely enjoy as it forces certainty over exchanges. Perhaps you can find a different WW2 and post-war that puts Bretton Woods on shakier ground, or rises the other trade partners faster and breaks the Dollar monopoly. I suggest a British hold on oil that shortcuts the American moves to create a Petrodollar. That might get you there.
 

RousseauX

Donor
The Bretton Woods system was setup at end of WW2 to regulate the exchange rate of the free world economies. The exchange rate between the various countries was fixed to the USD and the USD was fixed to gold price. In the 1960s the Bretton Woods system came under pressure finally collapsing in the 1971.

What would take for the Bretton Woods to collapse earlier say 1965?
It's not that hard by 1965 or so the US was already failing to defend the gold to USD peg, a more aggressive overseas dollar market could probably have ended it early-mid 1960s
 

kernals12

Banned
Richard Nixon was a terrible President, but he did the whole world a favor in ending Bretton Woods. A look at Britain's chronic balance of payments problems shows why.
 
McAdoo is killed during the Battle of Depot Street, the US Treasury Secretary fails to close the markets in 1914, allowing French and Britain asset liquidation and gold transfers home.
If course there wouldn't have been a Bretton Woods system in that case...
 
McAdoo is killed during the Battle of Depot Street, the US Treasury Secretary fails to close the markets in 1914, allowing French and Britain asset liquidation and gold transfers home.
If course there wouldn't have been a Bretton Woods system in that case...

One of my favorite PODs to unsettle the Great War, a market crash and more chaotic sell-off in 1914 does weird things to the economics of war. I think it works with alternate Presidents, another Treasury Secretary likely does not act so boldly, letting the market sort it, derailing the USA and forestalling its intervention.
 
One of my favorite PODs to unsettle the Great War, a market crash and more chaotic sell-off in 1914 does weird things to the economics of war. I think it works with alternate Presidents, another Treasury Secretary likely does not act so boldly, letting the market sort it, derailing the USA and forestalling its intervention.
Exactly. Remove McAdoo and a market shutdown, if it happened, wouldn't have been as rapidly implemented, and probably wouldn't have happened. The Entente powers remove five billion dollars in gold and the shaky US economy collapses rapidly into a severe Depression.
No US intervention in the Great War, hostility towards the Entente, probably a CP victory and huge social and economic unrest in the USA.
 
Exactly. Remove McAdoo and a market shutdown, if it happened, wouldn't have been as rapidly implemented, and probably wouldn't have happened. The Entente powers remove five billion dollars in gold and the shaky US economy collapses rapidly into a severe Depression.
No US intervention in the Great War, hostility towards the Entente, probably a CP victory and huge social and economic unrest in the USA.
That seems like that would be a great TL idea! has anyone done that?
 
Exactly. Remove McAdoo and a market shutdown, if it happened, wouldn't have been as rapidly implemented, and probably wouldn't have happened. The Entente powers remove five billion dollars in gold and the shaky US economy collapses rapidly into a severe Depression.
No US intervention in the Great War, hostility towards the Entente, probably a CP victory and huge social and economic unrest in the USA.

Indeed, I keep this POD back of my mind and still tinker with it. It would be a huge change with butterflies that sweep down through the war and beyond. I think it gets mentioned a lot but not delved into beyond a mere scratch.
 
That seems like that would be a great TL idea! has anyone done that?
Indeed, I keep this POD back of my mind and still tinker with it. It would be a huge change with butterflies that sweep down through the war and beyond. I think it gets mentioned a lot but not delved into beyond a mere scratch.
We've discussed it here a bit, in a couple of CP victory threads IIRR. Economics PoDs tend not be get the level of interest of others.
It's an interesting possible PoD and one of the few plausible ways to neutralise US involvement in WW1.

McAdooo tends to be remembered mainly for his racism and KKK connections, his support for Prohibitions, his progressivism on labour issues and his presidential candidature failures.
 
We've discussed it here a bit, in a couple of CP victory threads IIRR. Economics PoDs tend not be get the level of interest of others.
It's an interesting possible PoD and one of the few plausible ways to neutralise US involvement in WW1.

McAdooo tends to be remembered mainly for his racism and KKK connections, his support for Prohibitions, his progressivism on labour issues and his presidential candidature failures.

Sadly the economic might be far more influential than the political or military, those often driven more by economics than all others. The only reason I have so far left it alone is that I am trying to find ways not to keep the Great War all about the USA, this departure puts the USA front and center, as does altering who is President, so I am chasing down later and less American-centric changes to change course. But I might yet pull this trigger. I find it less obvious as a big change.
 
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