FAQ: What would you have done?
The world financial system that emerged after World War I was based upon the gold standard. The United States and Great Britain guaranteed that they would exchange their currencies for gold at a fixed rate ? $ 20.67 for an ounce of gold or 4.86 British pounds. Other major countries, most notably Germany and Austria, experienced serious bank runs. To stabilize their currencies, they exchanged their dollars and pounds for gold. The United States experienced a serious loss of gold (as did Great Britain). To encourage foriegn investors to buy American investments, the Federal Reserve Banks raised interest rates. If you were an American business ownder planning to build a new factory or buy new equipment, what would you have done after interest rates were increased?
goldsenze.com Answer:
I would have tried to borrow money from foreign banks, enlisted investments from established foreign companies to build here.
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