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Line 6: − You can't stop trade between people. Without trade, people starve. So aggregate exchange rates have to be established between local communities for cross border transactions. These exchange rates for cross border transactions are handled between bankers. The Bretton Woods conference established between bankers who pays who for what. More precisely what institution would accept payment from, or make payment to which institution on an approved list to count their total assets as a qualified borrower or lender. This is called the Bretton Woods System. Some of these institutions didn't exist before the conference, and were created out of the conference with aggregate assets of lenders participating in the conference to provide working capital. The institutions are the [[World Bank]], the [[International Monetary Fund]] to reconcile accounts annually between member states. And the Bank for International Settlements to settle mostly civil claims between actors.+ − + + +
→Bretton Woods system
==Bretton Woods system==
==Bretton Woods system==
[[File:648px-Franklin D. Roosevelt with King Ibn Saud aboard USS Quincy (CA-71), 14 February 1945 (USA-C-545) (1).jpg|right|250px|thumb|Ibn Saud meets with President Franklin Roosevelt, February 14, 1945.]]
[[File:648px-Franklin D. Roosevelt with King Ibn Saud aboard USS Quincy (CA-71), 14 February 1945 (USA-C-545) (1).jpg|right|250px|thumb|Ibn Saud meets with President Franklin Roosevelt, February 14, 1945.]]
Trade between people and nations cannot be prevented. In modern society, without trade, people starve. So aggregate exchange rates have to be established between for cross border transactions. These exchange rates are handled between bankers. The Bretton Woods conference established a trading system between bankers.
On February 14, 1945, US [[President Franklin Roosevelt]] reached an agreement with [[Ibn Saud]], King of [[Saudi Arabia]], to make the US dollar the international [[reserve currency]] for the purchase of [[crude oil]].<ref>[https://www.history.com/news/fdr-saudi-arabia-king-oil How FDR Charmed a Saudi King and Won U.S. Access to Oil], BY: LESLEY KENNEDY, UPDATED: OCTOBER 25, 2023 | ORIGINAL: OCTOBER 18, 2018. history.com</ref>
This came to be known as the Bretton Woods System. Some of the institutions established at the Bretton Woods Conference previously did not exist, and were created out of the conference with aggregate assets of lenders participating in the conference to provide working capital. The institutions are the [[World Bank]], the [[International Monetary Fund]] to reconcile accounts annually between member states. And the Bank for International Settlements to settle mostly civil claims between actors.
On February 14, 1945, US [[President Franklin Roosevelt]] met with and reached an agreement with [[Ibn Saud]], King of [[Saudi Arabia]], to make the US dollar the international [[reserve currency]] for the purchase of [[crude oil]].<ref>[https://www.history.com/news/fdr-saudi-arabia-king-oil How FDR Charmed a Saudi King and Won U.S. Access to Oil], BY: LESLEY KENNEDY, UPDATED: OCTOBER 25, 2023 | ORIGINAL: OCTOBER 18, 2018. history.com</ref>
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