nakedempire


The American Empire in a Changing World



Pages

Monday, February 4, 2013

''Pernicious influence: The world reserve currency – root of all evil?''

From Pakistan Tribune

''Dollar was as good as gold, just more liquid. Every country chose dollar treasury bills over holding gold, as holding T-bills paid interest. Gold didn’t.

The US started building its Military Industrial Complex and took on adventures like the Korean and Vietnam War, running huge fiscal and trade deficits, putting pressure on dollar’s fixed peg to gold. In 1971, Nixon was forced to close the gold window.

Dollar was no longer as good as gold, but it had already become a widely used reserve currency and the most liquid trading asset.''

read more 

1 comment: