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.

 


Film Review: ‘Beauty and the Dogs’ takes hard look at an unfeeling society

Updated 20 October 2018
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Film Review: ‘Beauty and the Dogs’ takes hard look at an unfeeling society

CHENNAI: A brutal title, “Beauty and the Dogs” is an electric French-Tunisian drama by Kaouther Ben Hania (“Imams Go to School,” “Zaineb Hates the Snow”), which has been entered as Tunisia’s submission for the best foreign-language film at the 2019 Academy Awards. Although the film is yet to earn a nomination, it is a powerful piece of cinema that deserves recognition.
Based on a real-life incident in 2012, the movie begins at sunset and ends at sunrise and zooms in on a woman traumatized by an unfeeling society. A rather weak script, but bolstered by a strong, moving story mounted on lovely long takes, Hania’s creation is an unflinching look at how a young woman who is raped by a policeman fights a degenerate system.

Hania does not sensationalize and focuses on the aftermath of the horrifying incident when her protagonist, Mariam (Mariam Al Ferjani), doggedly pursues the villainous cop, who has all the muscle power and support of his superiors. They try every trick to derail Mariam’s grit and determination.

The movie begins on a note of fun with Mariam attending a college party at a Tunis disco. After a mild flirtation with Youssef (Ghanem Zrelli), the two go for a walk on the beach, where she is raped. We only see Mariam running with Youssef at her heels, and we get a feeling that he is chasing her. But no, she is running away in desperation.

“Beauty and the Dogs” is a hard critique of an unfeeling society. Even a woman police officer that Mariam approaches is uncaring and, worse, throws her back into the den of dogs, so to speak. Earlier, a female attendant at a clinic where Mariam goes for a mandatory physical examination seems contemptuous. The film is littered with points of horrific humiliation for Mariam, something which leads to audience sympathy staying unwaveringly strong.
The film is especially important in the current #MeToo climate, where an international discussion on sexual harassment and rape is taking place from Hollywood to Bollywood but has yet to shake up the Middle East.