Loading ...Dollar Diplomacy Down is a presentation (with transcript) by Professor Michael Hudson and Professor Radhika Desai, about the transition of the $US from a gold backed global trade currency, replacing the Imperial Pound Sterling system, to an imperial fiat-currency, backed by the need to buy oil in dollars, and by being able to get paid good (value-extractive) returns on $US investments. The maintenance of the $US value by paying higher interest on investments became more extractive of existing value as industrial production declined in the US. This hollowed-out the US industrial economy, by making it higher-cost, so not competitive, and not worth building new factories, which were built in low-production-cost countries, instead. The globalization of finance, by removing controls on the movement of money across borders, made this profitable for international investors.
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