The Dollar – Part II
By Barrio Bee
During the late 19th century thru the early 20th century,
The U.S. grew in economic and military power;
Investments in foreign countries grew;
European control was not tolerated.
President Taft designed a policy–
To protect U.S. commercial interests from the Europeans;
It was claimed an official government obligation,
And the “gunboats” paved the way–
For the U.S. to buy influence before resorting to the threat of force.
Alas… we have the advent of “dollar diplomacy”…
Of course… this led to a drastic change in monetary policy–
Expand money supply for war efforts and economic manipulation;
Congress offered little resistance since special interests benefitted.
Another factor for U.S. growth in economic and military power–
Was being spared the destruction suffered by other nations during WWII.
They opted to print money rather than rebuild with taxes or spending restraint;
Choosing not to return to the gold standard,
As U.S. vaults were already filled with their gold.
Alas… we have the advent of the “dollar as the world currency”…
By the mid-20th century, the dollar muscled out the pound;
The dollar was said to be “as good as gold”.
The irony was that it was illegal for American citizens to own gold!
Of course… The U.S. did exactly what many predicted it would do–
It printed more dollars than there was gold to back it.
But the world accepted those dollars,
Until the late 1960’s… when the world demanded the U.S. to fulfill its promise;
Pay one ounce of gold for every $35 presented.
Alas… we have the advent of the “gold standard” collapse…
In 1971, President Nixon officially closed the U.S. gold window–
Refusing to pay out any of the remaining 280 million ounces of gold.
Basically… The U.S. declared insolvency;
The world concluded that another monetary system had to be devised.
And wouldn’t you know it… a new system was devised;
Surprise… The U.S. was allowed to control the world currency printing presses,
With no restraints placed on it… None whatsoever!
Not even a pretense of gold convertibility!
Alas… we have the advent of “dollar domination”…
Next month… The Dollar – Part III…