http://www.omroepzeeland.(...)-wimpel#.T56ND-2Pegwquote:Zeeuws-Vlaanderen was eerste met oranje wimpel
OOST-SOUBURG - De oranje wimpel die mag worden gehesen bij de Nederlandse vlag werd voor het eerst massaal in Zeeland gebruikt. Dat heeft vlaggendeskundige Jos Poels uit Doetinchem uitgezocht.
quote:Ruuddewild.nl over Auschwitz
Omdat we nooit mogen vergeten wat er tijdens de Tweede Wereldoorlog in Auschwitz gebeurde, doet Ruud de Wild op donderdag 3 mei (een dag voor dodenherdenking) een live uitzending in en over Auschwitz. Dit wordt uiteraard geen uitzending zoals je van Ruud gewend bent.
Ruud krijgt er een rondleiding van Bob Cohen. Bob heeft 27 maanden in verschillende kampen overleefd. Hij zat 11 maanden in vernietigingskamp Auschwitz-Birkenau.
Auschwitz was het grootste van alle concentratiekampen. Er werden ongeveer 1,3 miljoen mensen naartoe gedeporteerd, waarvan er ongeveer 1,1 miljoen zijn vermoord.
Er wordt uit respect geen muziek gedraaid in het kamp, de studio staat daarom buiten het concentratiekamp.
http://www.theglobalist.com/storyid.aspx?StoryId=9522quote:A Brief History of Supply Chains by Sanjeev Sanyal - The Globalist
In ancient times, transportation technology was basic and the cost of moving goods was an important determinant of the production and distribution of a product. Thus, goods were put together close to the source of raw materials. Then, these products made their way in a largely linear chain to their end consumer.
Ancient trade routes like the Silk Road through Central Asia and the Spice Route over the Indian Ocean were mostly linear chains that took a finished product to its ultimate destination. Moreover, given the high costs, long-distance trade was limited to high-value items such as spices, weapons and luxury goods.
The production and consumption of most items was local. This meant that producer and consumer could directly communicate with each other, and the customer could specify exactly what he or she wanted. This was the world of the village weaver, potter, blacksmith and cobbler. The bulk of pre-industrial artisan manufacturing, therefore, was customized to the needs of the end consumer.
It was only in the 18th century that shipping technology improved enough to allow the large-scale functioning of an international production network. Interestingly, the first product to be put together with a truly global supply network was rum. Slave labor was imported from West Africa to the Caribbean in order to grow sugarcane (a plant originally from India). Sugarcane molasses were then shipped to New England where distilleries in Massachusetts, Rhode Island and Staten Island turned it into rum.
Some of the drink was consumed locally, but much of it was then sold in bottles and barrels in Europe and all over the Atlantic. It is said that the distillation of rum was the single biggest industry in colonial America — although its importance is now all but forgotten except in popular tales about pirates.
Shipping to the world
As the Industrial Revolution took shape in the late 18th century, production networks took on a totally different scale. The cotton industry was the center of this shift. Prior to the technological innovations of the Industrial Revolution, India was the cotton manufacturing center of the world and exported its textiles all over the world. Competition from imported cotton was a major cause of resentment for the traditional wool industry in Britain.
We have records of heated debates in Parliament in the 1600s and early 1700s about how to restrict the use of cotton. A law passed in 1699 stipulated that "all magistrates, judges, students of the universities, and all professors of the common and civil law… [must] wear gowns made of woolen manufacture." There were even laws that stipulated that corpses had to be buried wearing sheep's wool.
By the end of the 18th century, however, technological shifts dramatically changed the cotton industry. The spinning jenny patented by James Hargreaves in 1770 increased the amount of yarn spun by a worker by several orders of magnitude even as the flying shuttle revolutionized the speed of weaving the yarn into cloth. Meanwhile, the American inventor Eli Whitney invented the cotton gin that mechanized the process of separating cotton wool from the seeds.
All these changes were complimented by improvements in ship design and, by the mid-19th century, the introduction of steamships. As a result of all these innovations, a global supply network emerged that involved shipping cotton grown in the southern United States (often using slave labor) to the cotton mills in England. The finished cloth was then shipped out to the rest of the world.
Over the next century, transportation technology witnessed major breakthroughs that included the railways, trams, bicycles and the Suez Canal. By the time of World War I, we also had the Panama Canal, automobiles and even early airplanes. As a result, the cost of transporting goods dropped sharply. Ocean freight rates, for instance, fell 70% between 1840 and 1910.
The improvements in transportation also improved communications — steamships and railways could also carry letters — but there were few independent improvements in communications with the single exception of the telegraph. In other words, communications was the poor cousin of transportation until World War I.
A world with good transportation, but relatively underdeveloped communications, strongly influenced the industrial structure and supply networks of the early 20th century. Production was centralized at major transportation hubs, and Fordist production lines were used to mass manufacture goods. Vertically integrated industrial structures were needed to minimize communication gaps between various segments of the production process.
As mass manufacturing was ramped up, it was no longer possible for individual customers to specify requirements. The supply chain responded by standardizing products. Ultimately, even downstream distribution networks succumbed to standardization. This shift is best summarized by Henry Ford's famous comment, "Any customer can have a car painted any color that he wants so long as it is black." Retailing shifted in favor of large department stores that could house a large selection of standardized products, with price and variety substituting for customization.
Postwar technological changes
The Second World War witnessed the pinnacle of the Fordist production system. By 1950s, a new generation of technological changes began to alter the structure of global supply networks.
As a break from the past, communications began to influence developments independently of transportation. The telephone was patented by Alexander Graham Bell in 1876, but it would be well into the 1920s before phones were commonplace in the United States. The first transatlantic call between London and New York took place in 1926, and another two decades would pass before long-distance telephony was common in the rest of the world.
Meanwhile, transportation also went through another major innovation — containerization. Most people tend to ignore the importance of this innovation, but it was a radical idea. Until the 1950s, ships had to be manually loaded piece-by-piece. Industrial cables had to be carefully stacked next to boxes of delicate porcelain and perhaps a basket containing fruit.
This was not just time consuming, it was also very expensive. The cost of port handling accounted for almost half the transportation cost of shipping a truckload of medicine from Chicago to Nancy, France. Moreover, the system was prone to breakage and theft. It was not uncommon that the shipment got lost — and it was very difficult to trace it.
In the 1950s, entrepreneurs like Malcolm McLean began to revolutionize shipping — and logistics in general — by introducing standardized containers that could not merely be sealed and loaded into ships, but also could be seamlessly passed on to the truck and rail network. Both ships and ports were redesigned to handle containers.
Ships purchased in the early 1970s could carry four times the cargo capacity of traditional ships. Their faster speeds and turnaround time in port allowed them to make six round trips a year between Europe and the Far East, compared to three-and-a-half for the older ships.
Interestingly, western countries persisted with building old style ports well into the 1970s. They already had large existing fleets and other infrastructure from the pre-container age and could not easily adopt full containerization. Bureaucratic persistence and political pressure from port workers' unions also slowed the shift.
Thus, it was Asia that wholeheartedly adopted containerization and built large new facilities. Hong Kong and Singapore asserted themselves as major ports and clearinghouses for containerized shipping. These two ports had established themselves as the world's largest container ports by 1990 — and Asian ports continue to dominate to this day.
Communications revolution
The combination of containerization and telephones (and related technologies like the fax) caused the next shift in supply networks. Improved communications meant that it was possible to exactly specify components and products. Containerization meant that these components could be transported cheaply and be delivered "just-in-time."
In turn, this allowed the production process to be neatly modularized and contracted out. Ironically, one of the first companies to take advantage of this was the U.S.-based toy manufacturer Mattel, which used it to produce the Barbie. Despite Barbie's All-American image, the doll was produced abroad from its very inception in 1959. The earliest Barbie factories were in Japan and Taiwan, and today it is put together by a complex network spanning the world.
Although the technologies and practices related to the new supply chains originated in the United States, it was Japan that leveraged them to fundamentally change production systems. Dubbed "lean production," the Japanese production system was both more flexible as well as able to sharply reduce the need to carry inventory. It made the vertically-integrated Fordist assembly line obsolete.
Many of the elements of the new system evolved originally in the automobile industry, but they were soon being applied in other sectors too. The electronics industry turned out to be especially well-suited to the decentralized production process.
By the late 1980s, the whole world was trying to copy the Japanese system. Nonetheless, it was East Asia that best internalized the network-based production system. There were many reasons for this. First, much of the infrastructure in the region was new. In many cases, the infrastructure was specifically created to support supply chains for Japanese companies. Second, geography helped since most of the key economic hubs could be linked by sea. This was a key advantage since transportation by ship is much cheaper than by rail or road.
Third, East Asia had a very heterogeneous mix of skills and wages. This meant that different countries could specialize into different parts of the modular production chain. The addition of Southeast Asia and China's special economic zones to the supply chain meant that the production network could remain within the region even after wages began to rise in Japan, Hong Kong, Singapore, Taiwan and South Korea.
By the 1990s, much of the world's manufacturing had shifted to the new system, but the decade will be remembered for what is best described as the "Communications Revolution." Within a few short years, technologies such as mobile telephony and the internet went from being barely known to being ubiquitous. The efficiency of transportation networks also improved but, in a role reversal, these gains were now driven mostly by improvements in communications technology.
The cost of real-time international communications had been prohibitive in the 1930s and barely affordable in the 1960s, but became irrelevant by the end of the 1990s. This not only made lean manufacturing ever more efficient, but allowed the creation of international production networks in a completely new area — services.
Around 1993, the management of American Express noticed that the cost of running their credit card operations in India was significantly lower than that for comparable businesses elsewhere. So when the bank decided a year later to consolidate their finance functions in three locations around the world, India was chosen to anchor the Asia-Pacific operations. Very soon companies like British Airways and GE Capital were setting up large outsourcing units in India. Thus was born the global services outsourcing business.
Meanwhile, the efficiency gains of "just-in-time" and lean production were making their way downstream and being applied to distribution networks. One of the results of this change was the rise of hyper-markets like Walmart and Carrefour. By leveraging scale, logistics and lean inventories, they were able to bring down retail prices as well as provide consumers with unprecedented choice.
Into the cloud
The lean production model was the result of innovations in containerization and fixed-line telephony. Although production was decentralized, we are still dealing with a pyramid of rigid industrial relationships (such as the Japanese keiretsu). The communications revolution fundamentally changed this environment by making it possible for everyone to contact everyone, specify a requirement and negotiate a price. This model retained most of the advantages of lean production, but was far more flexible and adaptable. The supply chain was no longer a chain but a cloud — an evolving ecosystem where economic agents could collaborate in one sphere and complete in another.
The production of Apple's iPhone and iPad are good examples of this new production network. The iPhone is made up of inputs sourced from around the world that are then assembled together by Foxconn in China. The product never passes through an Apple facility during its production. Yet, Apple receives 66% of the price of an iPhone while Foxconn, the final assembler, receives a paltry 2.5%. Moreover, it is also worth noting that Samsung is a major supplier of the iPhone's components, even though it completes directly with Apple in the mobile phone and tablet markets.
Now watch as the distribution end of the chain also dissolves into a cloud.
http://www.omroepzeeland.(...)afstaan#.T6qbLu2Pegwquote:Gezocht: Vlissingers die DNA willen afstaan
VLISSINGEN - De Walcherse Archeologische Dienst zoekt tussen de 100 en 200 mannen van binnen en buiten Vlissingen die hun DNA willen afstaan voor onderzoek naar hun verre voorouders, de zogenoemde Oer-Vlissingers.
Ik vind dit toch wel het meest interessante. Wat schreef de dokter hierover.quote:Op dinsdag 8 mei 2012 08:27 schreef ExperimentalFrentalMental het volgende:
07-05-2012
Uit het rapport wordt ook duidelijk dat Hitler last had van waanbeelden: hij verloor de realiteit uit het oog.
Je zult moeten afwachten tot die documenten ooit eens gepubliceerd worden (als ze dat niet al zijn). Zal helaas wel in eoa collectie verdwijnen.quote:Op woensdag 9 mei 2012 19:20 schreef Bluesdude het volgende:
[..]
Ik vind dit toch wel het meest interessante. Wat schreef de dokter hierover.
Vaak wordt Hitler voor gek en voor psychopatisch verklaard. Kan de dokter dat bevestigen ?
http://www.knack.be/nieuw(...)le-4000096920504.htmquote:5 beschamende wetenschappelijke experimenten
woensdag 16 mei 2012 om 10u18
De wetenschap kende in haar lange geschiedenis heel wat gloriemomenten, maar net zoals de mens is ook zij niet perfect. Een overzicht van de 5 meest schandelijke wetenschappelijke proeven volgens het blad ‘Scientific American’.
http://www.pzc.nl/regio/b(...)g-Bergen-op-Zoom.ecequote:Maquette uit 1751 naar jarig Bergen op Zoom
vrijdag 18 mei 2012 | 07:10 | Laatst bijgewerkt op: vrijdag 18 mei 2012 | 11:48
BERGEN OP ZOOM - In het kader van het 800-jarig bestaan, haalt Bergen op Zoom een maquette van 65 vierkante meter naar het koetshuis van het Markiezenhof.
De maquette is in het bezit van een maquettemuseum in Parijs en toont Bergen op Zoom tijdens een belegering door Franse soldaten in 1747. Dat het antieke gevaarte door de Fransen is gemaakt, wordt verklaard door het feit dat de Fransen wonnen.
Dit jaar zal ook een spektakelstuk worden opgevoerd: Diederick, dat zich afspeelt in de tijd van het beleg. De maquette is in het koetshuis van 1 juli tot 31 oktober.
Voor wie zich afvraagt waarom die mummie op de foto een christelijk kruis vasthoudt: dat is het lichaam van een 18e-eeuwse Oostenrijker dat bewaard wordt in het dorp St. Thomas am Blasenstein.quote:
goed opgemerkt beste Iblardiquote:Op woensdag 23 mei 2012 09:01 schreef Iblardi het volgende:
[..]
Voor wie zich afvraagt waarom die mummie op de foto een christelijk kruis vasthoudt: dat is het lichaam van een 18e-eeuwse Oostenrijker dat bewaard wordt in het dorp St. Thomas am Blasenstein.
Zie http://de.wikipedia.org/wiki/Luftg%E2%80%99selchter_Pfarrer
Duur : 52 minutenquote:Documentaire over de zoektocht naar het graf en de resten van de laatste koning van Burundi, Ntare V, die in 1972 werd vermoord. Robin Ramaekers volgt daarbij het spoor van het Belgische Disaster Victim Identification team en Jean-Jacques Cassiman, de wereldberoemde Vlaamse geneticus en DNA-specialist.
http://www.hln.be/hln/nl/(...)rs-op-het-menu.dhtmlquote:Het menu van de vroege voorouders van de mens was veel gevarieerder dan tot nu toe gedacht. Zo heeft de Australopithecus sediba, een mensachtige, zich ondermeer met boomschorsen gevoed. Dat hebben wetenschapper van het Max Planck Instituut voor evolutionaire antropologie in Leipzig ontdekt. Hun bevindingen verschenen in het Britse vakblad 'Nature'.
De wetenschappers voerden hun onderzoek uit op fossiele resten die amper enkele jaren geleden ontdekt werden in het Zuid-Afrikaanse Malapa. De twee miljoen jaar oude tanden van een oudere vrouw en een jongere man van de mensachtige soort werden onder de loep genomen.
Tot hun eigen verbazing kwamen de vorsers tot de vaststelling dat de eetgewoonten van de Australopithecus sediba verschillen met die van de andere soortgelijke Afrikaanse mensachtigen.
De twee onderzochte menselijke voorouders werden een paar miljoen jaar geleden bij een aardverschuiving begraven onder een hard gesteente. Wetenschappers spreken van een unieke fossiele vondst.
Dat er nu pas een monument voor deze mannen is gemaakt....quote:Bomber Command Memorial moves veterans
Hundreds of RAF Bomber Command veterans have been getting a first look at the new memorial in London's Green Park honouring the sacrifice of 55,573 of their comrades during World War II.
http://www.bbc.co.uk/news/uk-18633791
quote:LEUVEN - De Leuvense burgemeester Tobback is nog steeds boos om de opgravingen op het herdoopte Rector De Somerplein, vlakbij zijn stadhuis. Er werden 28.000 scherven bovengehaald maar zelfs het Leuvense museum M is voorlopig niet geďnteresseerd.
Dat Louis Tobback niet meteen warm liep voor de archeologische opgravingen vlakbij zijn stadhuis, was bekend. Die opgravingen hebben de heraanleg van het Fochplein (nu het De Somerplein) vertraagd en 650.000 euro gekost, aldus Tobback.
Wat de archeologen hebben ontdekt, overtuigt de Leuvense burgemeester niet, zo zegt hij in De Morgen.
'Een zootje scherven, meer niet', klinkt het.
De archeologen ontdekten dat het plein sinds het jaar 1000 na Christus permanent bewoond werd - in de Middeleeuwen en ook later door de welstellende burgerij. Ze haalden 28.000 vondsten naar boven: dierlijke beenderen, glas, steenstalen en aardewerk.
Het ontgoochelende is dat die vondsten nu in een honderdtal verhuisdozen klaar staan om naar het Leuvense museum M te verhuizen. Maar dat museum is niet zinnens er gauw iets mee te doen. Wegens tijds- en personeelsgebrek, luidt het.
Op langere termijn wil het museum wel enkele zalen aan archeologie wijden, maar die plannen zijn nog vaag, zo luidt het nog in De Morgen.
'De handelszaken hier zijn geruďneerd en er zijn mensen ontslagen in sommige broodjeszaken aan het plein,' zegt Tobback die duidelijk niet vindt dat de opgravingen dat leed waard waren.
En gevondenquote:Op maandag 9 juli 2012 11:58 schreef Cobra4 het volgende:
Marine zoekt gezonken vlaggenschip voor de kust bij Vlissingen
quote:Marine duikt resten scheepswrak op
AMSTERDAM - Marineduikers hebben mogelijke restanten van het historische schip Walcheren opgedoken.
Ze hebben scheepsbalken van twee en acht meter met metalen pennen aangetroffen en een bakstenen muurtje dat mogelijk deel was van de broodbakoven van het vlaggenschip. Dat laat het ministerie van Defensie dinsdag weten.
De Walcheren, die bij diverse grote zeeslagen was betrokken, verging in 1689 voor de haven van Vlissingen. Hierbij kwamen 24 opvarenden om.
De provincie Zeeland had de marine gevraagd onderzoek te verrichten in de Scheldemonding bij Vlissingen.
Botsing
Onderzoek had uitgewezen dat de Walcheren vermoedelijk in botsing was gekomen met het Westerhoofd van de Koopmanshaven en tot zinken kwam bij de voormalige ingang van de Nieuwe Haven.
Sonar- en magnetisch onderzoek toonden hier veel verstoringen in de bodem. De marine ging maandag en dinsdag op onderzoek uit met een onderwaterrobot, sonar en duikers.
De sterke stroming en het zeer slechte zicht onder water maakten de zoektocht complex. De gevonden voorwerpen worden in overleg met de provincie, de gemeente Vlissingen en culturele instellingen aan nader onderzoek onderworpen.
http://www.theglobalist.com/storyid.aspx?StoryId=9633quote:A Brief History of Global Anchor Currencies by Sanjeev Sanyal - The Globalist
By Sanjeev Sanyal | Thursday, May 24, 2012
Throughout history, the global system of trade and finance has only ever been in "balance" by lucky coincidence — or when a hegemonic power has imposed its will in order to make the system work. In addition to setting the rules, these powers also supplied crucial liquidity to facilitate the flow of trade between countries. Sanjeev Sanyal explains.
One of the common characteristics of international monetary systems throughout history is the willingness of a major economy — usually the pre-eminent power of its time — to trade its credibility to provide the world with a monetary anchor.
This leads to a symbiotic relationship between the anchor country and the rest of the world: The anchor country gets cheap financing and the rest of the world gets the monetary liquidity needed to lubricate economic activity.
During the Roman times, for instance, the world economic system was underpinned by booming trade between the Roman Empire and India, the export champion of the ancient world. Merchant ships sailed down the Red Sea or the Persian Gulf and then took advantage of the monsoon winds to cross the Arabian Sea to India.
The problem with Indo-Roman trade, however, was that India ran a large trade surplus with the empire. As Pliny (23-79 AD) wrote: "Not a year passed in which India did not take fifty million sesterces away from Rome."
The trade deficit meant that there was a continuous drain in gold and silver coins that, in turn, created shortages of these metals in Rome. Expressed in modern terms, this meant that the Romans were constantly facing a monetary squeeze.
Matters were made worse by the fact that the empire frequently ran fiscal deficits due to external and internal wars. Roman emperors tried to deal with the twin deficits in various ways. Emperor Vespasian tried unsuccessfully to impose restrictions on imports from India in the 1st century AD.
However, the more common response to the problem was the debasement of imperial coins by reducing the gold/silver content (the ancient equivalent of printing money). Not surprisingly, the real value of the coins declined and the Romans experienced inflation.
It is estimated that the price of a military uniform rose 166 times between 138 and 301 AD. The price of wheat rose more than 200-fold during this period. This should dispel another common belief that inflation is a modern invention.
The Romans tried many things to stabilize prices, including Emperor Diocletian's famous edict to fix prices. None of these efforts worked in the face of a continuous trade deficit with India, persistent fiscal deficits and the consequent debasement of coinage. (Interestingly, the Indians continued to accept the debased coins for centuries, although probably at a steadily falling exchange rate).
Ultimately, inflation led to serious distortions in the economy. It is said that soldiers' pay was so diminished in real worth that a full year's pay could barely buy eight week's worth of bread. This was one of the pressures that eventually eroded Roman credibility even as the empire went into terminal decline.
Pieces of eight
For a thousand years after the decline of Rome, Europe played a relatively small role in the global economy even as trade boomed between the Arabs, Indians, Chinese and the kingdoms of South East Asia.
Columbus' discovery of the Americas and Vasco da Gama's discovery of the sea route to India changed this. Spain now became a superpower and its financial strength was bolstered by its access to silver from New World.
Between 1501 and 1600, 17 million kilograms of pure silver and 181,000 kilograms of pure gold flowed to Spain. However, Spain spent its wealth on expensive wars in the Netherlands and elsewhere.
As a result, it constantly ran trade deficits with the rest of Europe and paid for it in silver coins. This injection of monetary liquidity, in turn, caused an economic boom in the rest of Europe and helped spread the spirit of the Renaissance.
Nonetheless, the increase in the supply of precious metals also caused a sustained bout of inflation. Prices rose at least four-fold in Spain over the course of the 16th century. Despite its access to New World silver, Spain became increasingly unable to service its war debts.
Spain's supplies of gold and silver were often pledged years in advance to Genoese bankers. Eventually, Spain repeatedly defaulted on sovereign debts (in 1607, 1627 and 1649) and went into geopolitical decline. Many bankers, such as Germany's Fuggers dynasty, were ruined by the defaults.
The political and economic center of gravity now shifted north to Holland, France and Britain. They would by turns come to dominate world trade in the 17th, 18th and 19th centuries.
Despite this shift, Spanish silver coins (known as "pieces of eight" or Spanish dollars) continued to be the key currency used in world trade right up to the American Revolutionary War. In fact, they remained legal tender in the United States till 1857 — long after Spain itself had ceased to be a major power.
The opium trade
It was only in the 19th century, following the defeat of Napoleon, that Britain was finally able to impose a system that affirmed its role as the world's anchor economy.
This system is known to historians as "triangular trade" between Britain, India and China. Under this arrangement, the British sold manufactured goods to the Indians and purchased raw cotton and opium. The opium was then sold to the Chinese in exchange for goods such as tea and porcelain. These were then sold back in Europe to fund the manufacture of exports to India.
In this way, Britain did not bleed gold in order to keep the system flowing. Note that this global trade system functioned because the East India Company was militarily able to impose its will. The imports of British-made industrial goods devastated India's large artisan-based manufacturing sector.
At the same time, Chinese attempts to close down the opium trade resulted in the Opium Wars of 1839-42 and 1856-60. In other words, war, colonization and drug-running were key ingredients in managing the international monetary system.
By the middle of the 19th century, the world was functioning on a bimetallic system based on gold and silver. However, following the British example, most major countries shifted to a gold standard by the 1870s.
The Bank of England stood ready to convert a pound sterling into an ounce of (11/122 fine) gold on demand. The U.S. Treasury was similarly committed to convert an ounce of gold at $4.86. This, in turn, locked the dollar-pound exchange rate.
This underlying monetary system anchored a great age of expansion in global trade and economic activity. Nevertheless, its success was underpinned by a lucky coincidence — a succession of gold discoveries in California, Australia and South Africa that allowed the world's gold supplies to expand roughly in line with economic activity. It helped that many of these discoveries were conveniently in British control.
Even then, it was not an age without problems. There were periods of inflation as well as periods of deflation. A succession of "panics" affected the global financial system. There were worries that excessive gold supplies would lead to sustained inflation.
The system was finally disrupted by World War I, but by this time Britain had long ceased to be the world's most powerful economy. Britain was overtaken by the United States around 1890 and then by Germany in the 1900s.
After the war, harsh terms were imposed on Germany by the victorious allies. With no other resources available, the German authorities resorted to printing ever greater amounts of paper money till the process spiraled out of control.
By November 1923, a kilogram of bread cost 428 billion marks, a kilogram of butter 5,600 billion marks, a newspaper 200 billion marks and a tram ticket 150 billion marks. This experience with hyperinflation remains imprinted in German memory.
Meanwhile, the British tried to reestablish the pre-war global order by going back to a gold standard in 1925. There were also attempts to create a mercantile system of "Imperial Preference" within the British Empire that would have served the same purpose as had triangular trade in the19th century.
The world had changed, however, and Britain's position was no longer credible. With the Great Depression taking hold, the Bank of England was forced to choose between providing liquidity to the banks and honoring the gold peg. It opted for the former on September 20, 1931.
The economics of persistent imbalance
The current economic crisis, variously named the "Great Contraction" or the "Great Recession," is often interpreted as a crisis of the world monetary system triggered by indebtedness and a loss of credibility.
Many experts have argued for "reform" of the global monetary system. There have been many suggestions ranging from a return to gold, a greater role for the IMF's Statutory Drawings Rights (SDR) or a completely new world currency.
What most people are little aware of is how old a problem this really is. Ancient Indians were willing to accept debased Roman coins just as modern central banks and economic participants are willing to hold U.S. dollars — despite its private and public indebtedness, its political wrangling and even a sovereign ratings downgrade.
Then as now, this is not because nations cannot see the problem of an asymmetric arrangement, but due to their willingness to pay a price for keeping the world economic system liquid.
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