The Great Depression Was The Culprit Of World Wars And Man-made Disasters

In a live stream on May 6th, Miles Guo shared with his fellow fighters the economic situation of countries around the world before and after World War II. He also expressed his personal views on the similarities between the current world financial and political landscape and those at that time.

Miles said that for a long time before World War II, major countries in the world, especially European countries, were anti-dictatorship, pursued democracy, and highly praised globalization. But then, before the outbreak of World War II, the world ideology turned to ultra-nationalism, far-right ideology, and conservative and closed economic policies, which resisted globalization. The confrontation between two different ideologies led to the Great Depression.

Any World War was the result of an economic downturn. According to incomplete statistics, about 60 million people died in World War II. But from 1929 to 1948, the longest economic depression in human history, more than 200 million people died during this period, and the world’s population was only 2 billion at that time. The Great Depression began when the British Empire adhered to the gold and silver standard, conservative economies among nations, raised tariffs, shortages of food and industrial materials, and businesses struggled to survive. Later, the Bretton Woods system dissolved between 1968 and 1973, and the gold standard was abolished. Starting from the United States, the currency era based on national credit was opened.

Miles further said that historically, wrong monetary policy prolonged the Great Depression for a long time. Regrettably, shortly after World War II, dollar finance repeated the same mistakes and chose to decouple from gold too aggressively, and world finance has since entered an era of excess currency. Miles can’t help but imagine that if there were high-quality digital transaction methods such as HCoin and HPay at that time, which were anchored in precious metal pricing, and had the attributes of a stable currency and venture capital, people might not have been misled and affected by those greedy financiers and politicians, and the war might have been avoided from the root cause.