Politicians and economists cause financial system chaos

It's no wonder that economies around the world are in trouble – because how can they grow when money is worthless? Record low interest rates demonstrate the collapse in the value of cash. India and Venezuela are the latest countries to experience the pain but many more will follow. The problem can be traced back to 1931 when Britain abandoned the gold standard. Up to that point the pound sterling was backed by gold. In 1933 US President Franklin Rooseveldt nationalised privately held gold and finally President Richard Nixon totally abandoned the gold standard for the dollar in 1971. Since then currencies have basically been worthless – simply pieces of paper with no intrinsic value. While financial institutions paid reasonable levels of interest on money invested, problems were held at bay, but once official and unofficial interest rates dropped virtually to zero, the current turmoil was inevitable. Thank you politicians and economists! Economics has never really recovered from the changes wrought by the influence of John Maynard Keynes.

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