d regional Cold Wars and the global Cold War, managing the challenges posed by détente and triangular diplomacy, the oil shocks and the collapse of Bretton Woods, and the human rights revolution. • The Hudson Institute: Joint Integration and Interoperability Symposium: Technical Innovation for the Future of

ICLR/PRXL, Bofa upgrades VFC (buy), Wells initiates WX (op) Reporting Pre-Open: CADC, KBH Economic Data: no major releases Fed's Dudley speaks at Bretton Woods @ 1:30pm, Fed's Williams speaks on unconventional monetary policy at SNB conference @ 2:45pm, ECB's Trichet speaks in Washington @ 4:30pm Conferenc

A'S IEP us San* M.1•'AI an PPM rewricwit DmBMtbpi IP "FIE E P 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% Perversely, the current post Bretton Woods system also allows for huge operations/stimulus to overcome any crisis/shock. We also shouldn't underestimate the positive impact that this can hav

rn Study: The Next Financial Crisis The high government deficits that have been run since the 2008/09 GFC have simply been an extension of the post Bretton Woods multi-decade trend. Figure 25 shows the US annual budget deficit back to 1791 and illustrates that the deficits seen since the early 1970s have con

availatalav for EM §TnigHaantrilM Nes Fiat currencies the problem, but also allow the quick fix Although our analysis so far shows that the post Bretton Woods financial order has been more crisis and shock prone then the prior 25+ years, and also that seen through most of observable financial history, the

d started to respond to allow domestic lending to compete by loosening regulations. The modern financial system thus started to take shape and the Bretton Woods system begun to see irreversible damage. Trade imbalances started to grow and US went from a surplus to deficit country, especially with the costs

f the countries only have data stretching back 20.30 years the trend of the last 50 years is clear for those with a longer data history. During the Bretton Woods system large current account positions in either direction were difficult to maintain without seeing large infbws/outflows of Gold which would have

and EM FX, while the G4 majors all outperform. The USD continues to conform to the multi-year cycle big USD cycles of the past. Since the fall of Bretton Woods, big USD down cycles of 9-10 years have been followed by big USD upswings of 6-7 years. While all cycles are different, the macro backdrop conform