Thoughts for the Weekend: Plus Ca Change…

by admin on May 8, 2009

Page 663, "A History of the Modern World," by Paul Johnson

"The peak post-war year for the American economy, relative to the rest of the world, was 1968, when American industrial production was more than one-third (34 percent) of the world total. It was also the climax of the America global paramountcy, the year of Lyndon Johnson's agony, the point at which the combined burden of foreign and domestic spending became to great to bear. Thereafter all was decadence. And with America's relative economic decline came a progressive softening of the dollar as a reserve currency. This inevitably undermined the Bretton Woods arrangements. From the late 1960s Washington ceased to control the world monetary system. To some extent it ceased to control its own currency since the quantity of unrepatriated dollars - what De Gaulle stigmatized as 'America's export of her own inflation' - now reached catastrophic proportions. The age of the dollar was over. The age of the Eurodollar dawned."

(Bolded by blogger circa 2009)

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