Global Reserve Currency and Global Financial Crisis

global financial crisis: Seventy years ago, the US definitively replaced the British pound with the dollar as the global reserve currency. Having reached unparalleled power by the end of World War II, the Americans could determine where to hold the conference that would lay the ground work for a new global financial system - and it wasn't in London, according to Deutsche Welle. After two world wars and a global financial crisis, the world was an economic and financial heap of ruins. Most countries had abandoned the so-called gold standard long ago, meaning that their currencies were no longer pegged to the price of the precious metal. The major powers had financed two wars by printing money and had taken on the risk of high inflation rates. And the British were up to their necks in debt to the Americans and Washington, there little reason to celebrate. The greenback has seen better days. Yet the politicians who control the dollar seem to think that it will be dominant forever. History teaches us, however, that global currencies on average have a life span of 80 to 100 years. China is now on the verge of displacing the dollar with the yuan. Finance ministers and central bankers from 44 countries met in the US state of New Hampshire, where a friend of President Franklin D. Roosevelt had just been elected senator. At the time, the British underestimated the home-field advantage that the choice of New Hampshire gave the Americans. On its own soil, Washington could crank up the pressure. (news.financializer.com). As reported in the news.