A global double dip is unavoidable. The problem is the massive global debt weighing down the world's economies, economies that are woefully incapable of servicing the debt burden placed on them.

The root cause of our current situation is that since August 1971, when the United States unilaterally discontinued the Bretton Woods Monetary Accord's Gold Standard, there has been no restraint on the creation of currency and credit.

President Nixon is frequently blamed for terminating the Bretton Woods' Gold Standard of $35 paper dollars for every 1 ounce of US Treasury gold in August 1971. But as we see in the table from 1945-71, the United States government refused to adhere to the Bretton Woods' Gold Clause long before President Nixon became President. The chart shows the inflationary effects of demonetizing gold on the US Currency in Circulation since August 1971.

The Analyst Magazine, Double Dip Recession, Bretton Woods, Banking System, Debt Crisis, Monetary System, Keynesian Economics, World Market, Monetary Inflation, Credit Crisis, Toxic Mortgages, American Sub-prime Mortgage Crisis, National Central Bank.