When was making my feature-length documentary film in 2007 on the launch of Sputnik by the Soviet Union and how America reacted, I had the opportunity to int...
Basically by eliminating the gold standard and ensuring that the US dollar became the international reserve currency and currency of trade, the demand for USD grew such that the US could finance itself and it’s growing military presence through the sale of Treasury securities to other sovereign nations.
Essentially, the contemporary hegemony of the United States is founded on a “free lunch” to use Hudson’s words, and this lunch is paid for by anyone wishing to trade with the US dollar. (which has basically been all international trade in the last 50 years but most notably the oil trade)
You can look on Michael Hudson’s website for more info but here is a short summary in his own words.
Basically by eliminating the gold standard and ensuring that the US dollar became the international reserve currency and currency of trade, the demand for USD grew such that the US could finance itself and it’s growing military presence through the sale of Treasury securities to other sovereign nations.
Essentially, the contemporary hegemony of the United States is founded on a “free lunch” to use Hudson’s words, and this lunch is paid for by anyone wishing to trade with the US dollar. (which has basically been all international trade in the last 50 years but most notably the oil trade)