The War at the End of the US Dollar | Resource Investor
The history of the US dollar is closely linked to US involvement in a series of wars. The Bretton Woods Accord and the resulting world reserve currency status of the US dollar were both byproducts of World War II (1939-1945). The Korean War (1950-1953) was followed six years later by the Vietnam War (1959-1975) which led to the end of the Bretton Woods system. Unfettered by the constraint of gold backing after 1971, the US dollar became a weapon in the Cold War (1945-1991) between the US and the former Union of Soviet Socialist Republics (USSR). Each war corresponded with an increase in the US money supply. The Gulf War (1990-1991) was followed by wars in Afghanistan, beginning in 2001, and in Iraq, beginning in 2003, and, simultaneously, by the US-led War on Terror that began in 2001. Like the wars that came before them, the recent staccato of US wars is correlated with increases in the US money supply. The Iraq war, for example, is estimated to have cost as much as $4 trillion.
20 Apr 2012 17:15
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