The U.S.had a net liquidity deficit in every year since 1950 (with the exception of 1957), Up to 1976 (when the private sector contributed its first trade deficit ) these deficits were entirely the consequence of excessive U.S. government unilateral transfers to foreigners (foreign policy-our far flung military bases and personnel). During all this time the private sector was running a surplus in all accounts: merchandise, services and financial. The Vietnam Ten-year War administered the coup d’etat to our gold bullion standard. By 1968, in an effort to keep the dollar at the $35 par, we had exhausted nearly two thirds of our monetary gold stocks, or approximately 700 million ounces to about 260 million ounces.
Sad but war spending still the sword pending on the neck of civilization, plus financial crisis that will force countries to fiscal inflationary spending looking to create jobs. But this is not all, climate change and the need to enforce measures for clean produccion are not welcome in EE.UU and less in the industry of war. Saddly paying more tha $4 per galon of gas we are becoming less competitive, food prices growing and salries not going up. The result societies more frustrates and easy to induce to new confrontations. A II Breton Woods? Only will work if the interest for human people is put before any other interest.
I wish the best for the humanity.
Sorry for my poor english.
Commenting by HaloScan
