A long time ago, the Gold Standard ruled. It has been praised again as the answer for current issues.
But once upon a time, England left the Gold standard, and bankers rushed to reinstate the precendent in the land of Money.
The story goes that bankers feared that if interest rates were not tied to Gold, they would be manage by politicians:
"Sober finance might be held hostage to political expediency, giving a bias towards inflation and paper money"
"Keynes...is flirting with strange gods and proposing to abandon the gold standard forever and to substitute a 'managed' currency...it is better to have some standard than to turn our affairs over to the wisdom of the economists for management."
- J. P. Morgan was warned.
Trying to bring England back to the Gold standard, bankers in the US kept interest rates extremely low. This might accelerated the bubble that ended in the crash of 1929. So similar. So close to recent events.
And the story went. Trying to push British currency up to match the previous honored place of an overvalued currency, it destroyed the British industry which needed cheap currency to be competitive in foreign markets.
1926 was a tumultuous year in England's history. The old bankers had no choice than to "returned to their natural habitat: the shadows. Playing duets at their pianos while strikers and police clashed in the streets" of London.
