Bris tolD is s e nt! Brie fing trade .

Th is w as th e com m on position of de l
particul
e gate s, in
ar of th e U.S. Th us th e y signe d th e Bre tton
W oods agre e m e nt w h ich gave rise to th e IMF and
W orl d Bank and cre ate d a syste m for curre ncy
IN FORMATION FOR ACTION controlin orde r to bring e xch ange rate stabil
U.S. w as th e undispute d e conom ic supe rpow e r and
ity. Th e

w as abl e to use its l e ve rage to gain th e fre e acce ss to

Th e G8 - Econom ics & Pow e r m ark e ts th at it w as de spe rate to e nsure . Th e stre ngth
of th e U.S. curre ncy and its use of th e Gol d standard
Introduction le ad to a syste m w h e re curre ncie s w e re pe gge d to th e
dol lar (itse l f pe gge d to a fixe d val ue of gol d). By
In orde r to unde rstand th e G8, and h ow it infl ue nce s 19 71, afte r a pe riod w h e re it h ad succe ssful ly cre ate d
our l ive s w e ne e d to unde rstand som e th ing of its e conom ic stabil ity, and ove rse e n th e post- w ar
h istory. Th e origins of th e G8 l ie in w h at w as k now n re construction of th e advance d nations e conom ie s, it
as th e 'Library Group' - a gath e ring of th e finance be cam e cl e ar th at th is syste m w as no l onge r te nabl e:
m iniste rs of th e U.S., W e st Ge rm any, France , and th e re w e re m ore Eurodol lars (dollars h e ld in bank s
th e Unite d Kingdom in th e W h ite H ouse Library in outside th e U.S.) th an th e U.S. coul d re de e m in gol d
April 19 73. Th e y m e t against a back ground of - th is le ad to Nixon pul l
ing out of th e Gol d Standard
e conom ic crisis - une m pl oym e nt, inflation & th e first and th e col l
apse of th e Bre tton W oods syste m .
oilcrisis - to discuss th e ne e d to bring stabil ity to th e
w orl d e conom y and pre se rve th e abil ity of capitalto Face d w ith grow ing e conom ic turbul e nce th e w orld's
function am idst incre asing e conom ic turbul e nce . O f advance d e conom ie s w e re unw il ling re l inq uish th e ir
particul ar im portance w as R ich ard Nixon' de cision control ove r th e w orl d e conom y and ne e de d to
to pul lth e U.S. out of th e Gol d Standard - th us guarante e th e fre e m ark e ts th at w e re vitalto th e ir
unil ate ral ly causing th e col l
apse of th e pre vail ing dom inance of it. H e nce th e cre ation of th e Library
m one tary syste m k now n as th e Bre tton W oods group and (e ve ntual l
y th e G8).
agre e m e nt. Th is gre w into a se rie s of re gul ar
m e e tings w h ich be cam e sol idifie d as th e G6 in 19 75
w ith th e incl usion of Ital y and Japan. It be cam e th e
G7 a ye ar l ate r afte r th e U.S. insiste d on th e
incl usion of Canada, be cause it w as e conom ical l
y
de pe nde nt on th e U.S., in orde r to counte rbal ance
w h at it saw as grow ing Europe an infl ue nce . It onl y
be cam e th e G8 in 19 9 8, afte r th e incl usion of R ussia
as a ne w fre e m ark e t e conom y.

Th e Pre h is tory ofth e G8

Th ough th e G8 itse l f onl y date s back to 19 75, it is

ne ce ssary to go back m uch furth e r, to 19 44, to gain a
prope r picture . 19 44 w as th e ye ar of th e Bre tton
W oods confe re nce ; w h il e W orl d W ar II rage d
around th e m 730 de l e gate s from th e 44 Al l
ie d M e n in Suits de cide w orld's fate s h ock !
nations m e t to pl an th e re buil ding of Gl obal (Bre tton W oods M e e ting)
Capital ism ,w ith th e ir sh are d e xpe rie nce s of th e Gre at
D e pre ssion in m ind. D uring th e 19 30's, as th e y saw W h at's H appe ning Now ?
it, th e use of e xch ange control s, trade barrie rs and
curre ncy de fl ation for sh ort- te rm nationalgain h as W h e re th e Bre tton W oods syste m h ad be e n a form al
fundam e ntal ly unde rm ine d w orl d trade and th e syste m th at incl ude d m any of th e w orl d's nations,
m ove m e nt of inve stm e nt to th e point w h e re trade th e G6/7/8 is an inform algrouping. Th e G8 h as no
w as l arge ly re stricte d to curre ncy bl ock s (nations le gal or form al pow e rs - rath e r it is a gath e ring
trading in th e sam e curre ncy e .g. Ste rl ing ) w ith w h e re th e finance m iniste rs, and oth e rs, of th e
de vastating conse q ue nce s. Som e al so be l ie ve d th at w orl d's large st e conom ie s gath e r to h am m e r out a
such trade w arfare h ad be e n a m ajor cause of th e tw o conse nsus am ong th e m se l ve s on h ow capital ism is to
w orl d w ars and th us it w as vitalto cre ate a syste m be rum . Th e y are th e n in a position to e nforce th is
base d upon th e uninte rrupte d fl ow of capital and conse nsus on th e re st of th e w orl d th rough th e ir
com bine d e conom ic (and m il itary) pow e r - be tw e e n cre ate a fre e circul ation of m one y. In particul ar th is
th e m th e y controlapproxim ate l y 70% of th e w orl d's occurre d in th e R e gan/Th atch e r ye ars w h e re
e conom ic output. Th e y are abl e to put th is in pl ace traditionalm anufacturing industrie s w e re de vastate d,
th rough th e ir infl ue nce in institutions such as th e and, not co- incide ntal l
y, m uch of th e pow e r of
W orl d Bank , IMF, NATO , W TO , O ECD e tc. organise d l abour w as l ost. Th e w orl d (and British )
Th ough initial ly conce rne d l arge l y w ith e conom ic e conom y w as re buil t to one base d upon th e fre e fl ow
pol icy th e G6/7/8 h as se e n fit to e xpand its re m it of finance (unde r Th atch e r th e U.K. e conom y w e nt
into any are a w h e re th e y pe rce ive a th re at to form one th at w as 9 0% m anufacturing & 10%
e conom ic stabil ity - and h e nce th e ir ow n inte re sts. finance to one th at w as 10% m anufacturing and 9 0%
Th is h as incl ude d se curity pol icy and te rrorism as finance ). Th e pow e r of Trans- nationalCorporations
w el las th ird w orl d de bt and crim e . Th ough it h as gre w m assive l y w h ile m uch of th e w orl d's popul ation
cl aim e d to be putting forw ard sol utions to th e face d incre asing instabil ity. Its th rough th is proce ss
w orl d's probl e m s it h as singul arl y fail e d to h ave th at th e de cisions of th e G8 trick l e dow n into our
m uch re al im pact inste ad ruth l e ssl
y push ing th e e ve ry day live s - from th e Starbuck s on e ve ry corne r,
age nda of fre e trade in its ow n and particul arl
y th e driving l ocal sm al l conce rns out of busine ss to

60 ye ars on — m e n in s uits s tillde cide w orld's fate .

U.S.'s inte re st. It re m ains com m itte d to th e Bre tton traditional m anufacturing jobs be ing re pl ace d by
W oods doctrine of th e unim pe de d fl ow of trade and une m pl oym e nt and poorl y paid pre carious
capitaland inde e d h as ove rse e n a m assive e xpansion e m ploym e nt in cal lce ntre s and th e l ik e , e ve r unde r
of th is l e ading to th e pre se nt situation of th e th re at of be ing m ove d e lse w h e re at th e w h im of
Gl obal
isation and Ne o- Libe ral ism . Th e ye ars since profit, e conom ic col lapse in Arge ntina to de bt in
th e Library Group first m e t h ave se e n a m assive Africa, th is is th e com m on th re ad th at l ink s it all
re construction of th e w orl d e conom y in orde r to toge th e r.

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