What We Are Reading Today: American Default by Sebastian Edwards

Updated 27 September 2018
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What We Are Reading Today: American Default by Sebastian Edwards

  • In 1933, when in a bid to pull the US out of depression, President Franklin D. Roosevelt depreciated the US dollar in relation to gold, effectively annulling all debt contracts
  • Revaluing the dollar imposed a hefty loss on investors and savers, many of them middle-class American families

JEDDAH: The American economy is strong in large part because nobody believes that America would ever default on its debt. Yet in 1933, Franklin D. Roosevelt did just that, when in a bid to pull the country out of depression, he depreciated the US dollar in relation to gold, effectively annulling all debt contracts. American Default is the story of this forgotten chapter in America’s history.

Sebastian Edwards provides a compelling account of the economic and legal drama that embroiled a nation already reeling from global financial collapse.

It began on April 5, 1933, when FDR ordered Americans to sell all their gold holdings to the government. This was followed by the abandonment of the gold standard, the unilateral and retroactive rewriting of contracts, and the devaluation of the dollar.

Anyone who held public and private debt suddenly saw its value reduced by nearly half, and debtors — including the US government — suddenly owed their creditors far less.

Revaluing the dollar imposed a hefty loss on investors and savers, many of them middle-class American families. The banks fought back, and a bitter battle for gold ensued. In early 1935, the case went to the Supreme Court. 

Edwards describes FDR’s rancorous clashes with conservative Chief Justice Charles Evans Hughes, a confrontation that threatened to finish the New Deal for good— and that led to FDR’s attempt to pack the court in 1937.

At a time when several major economies never approached the brink of default or devaluing or recalling currencies, American Default is a timely account of a little-known yet drastic experiment with these policies, the inevitable backlash, and the ultimate result.

 


No joking: Ben Stiller directs gritty prison drama

You have the freedom to tell these kind of stories on TV and work in a way that is not just about bringing huge audiences to the theaters, said Ben Stiller. (Reuters)
Updated 16 October 2018
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No joking: Ben Stiller directs gritty prison drama

  • Stiller puts on his auteur hat to tell the gritty and fascinating tale of a woman who helped two murderers escape from an upstate New York jail near the Canadian border
  • Stiller, whose films have grossed nearly $3 billion (2.5 billion euros), said it would have been impossible to “do all the nuances of (prison) reality in two hours” on the big screen

CANNES, France: Hollywood star Ben Stiller put away his clown face Monday to premiere his directorial debut in Cannes, a stranger-than-fiction prison-break drama that is based on a true story.
The American actor best known for the “Zoolander” and “Night at the Museum” films directed all eight episodes of “Escape at Dannemora,” the first of which was screened at MIPCOM, the world’s top television and entertainment showcase in the French Riviera resort.
With a stellar cast that includes Benicio del Toro, Patricia Arquette and Paul Dano, Stiller puts on his auteur hat to tell the gritty and fascinating tale of a woman who helped two murderers escape from an upstate New York jail near the Canadian border.
Their 2015 break-out from the Clinton Correctional Facility at Dannemora riveted America.
The interest grew still more intense when it became clear that middle-aged female supervisor in the jail, Tilly Mitchell, was having sex with both men and was smuggling hacksaw blades and burger meat into them.
Stiller, whose films have grossed nearly $3 billion (2.5 billion euros), said it would have been impossible to “do all the nuances of (prison) reality in two hours” on the big screen.
“You wouldn’t have been able to tell the stories of all the characters... or have the chance to lay out their world and build the tension,” he said after the screening.
“Television is now the place where you can make the kind of movies we are not making anymore,” he added.
Imagine, he argued, trying to get over the reality of Mitchell working with a lone guard in a room “full of 40 murderers and rapists, each with a pair of shears, working for 35 cents an hour” for an outside company that was making a fat profit on all their backs.
Stiller spent nearly two years working on “Escape at Dannemora,” visiting the surviving escaper David Sweat for five hours and shooting in the prison yards where he plotted the break with the Machiavellian Richard Matt, a talented painter who wrapped other inmates and prison guards round his finger.
He said the script was based on the anti-corruption report written by New York inspector general Catherine Leahy Scott, which Stiller said “read like a novel.”
“It is hard not to identify with the protagonist in a prison escape, but we wanted to show who they were as people and why they were in jail,” Stiller added.
“You have the freedom to tell these kind of stories on TV and work in a way that is not just about bringing huge audiences to the theaters,” said the 52-year-old actor.
“It is the kind of story that I have wanted to tell but I’ve never done until now.”
The first episode of “Escape at Dannemora” will go out on Showtime in the US on November 18.