[Marxism] Global Research: The "Dollar Glut" is What Finances America's Global Military Build-up

[Jerry Wells <jeremy@xxxxxxxxxxxxx>]

FYI: From: Global Research,  March 29, 2009

Economic Meltdown:
The "Dollar Glut" is What Finances America's Global Military Build-up
by Prof. Michael Hudson

http://www.globalresearch.ca/index.php?context=va&aid=12944

The U.S. media are silent about the most important topic policy makers
are discussing here (and I suspect in Asia too): how to protect their
countries from three inter-related dynamics: (1) the surplus dollars
pouring into the rest of the world for yet further financial speculation
and corporate takeovers; (2) the fact that central banks are obliged to
recycle these dollar inflows to buy U.S. Treasury bonds to finance the
federal U.S. budget deficit; and most important (but most suppressed in
the U.S. media, (3) the military character of the U.S. payments deficit
and the domestic federal budget deficit.

Strange as it may seem  and irrational as it would be in a more logical
system of world diplomacy  the "dollar glut" is what finances America's
global military build-up. It forces foreign central banks to bear the
costs of America's expanding military empire  effective "taxation
without representation." Keeping international reserves in "dollars"
means recycling their dollar inflows to buy U.S. Treasury bills  U.S.
government debt issued largely to finance the military.






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