Re: article on oil & dollars

[John Exdell <jbex@xxxxxxx>]

At 01:45 PM 2/27/2005, you wrote:
> On 27/feb/05, at 20:06, Julio Huato wrote:
>
> > Massimo Portolani <mxp@xxxxxxxxxx> wrote:
>
> > If the history of the sterling pound in the international markets is
> > any guide, the preeminence of the USD is already declining and will
> > continue to decline rather gradually (punctuated by a few sharp
> > adjustments and crises), in sync with the vanishing edge in US
> > productivity and standard of living.  Of course, I'm assuming the
> > world won't totally spin out of control...
> >
> > Julio
> I am not so sure of this, it appears to me that the Sterling pound
> suffered 2 wars and the collapse of its empire, it didn't give up
> voluntarily.
>
> Massimo

The first war created a serious crisis for Britain, and the second finished
off the empire.  But it's important to note that the U.S. bankrolled the
British-French war effort in 1914-18.  Even at that point Britain was in a
state of serious relative decline and a new world master had made an
entrance on the stage.  There are some interesting parallels with the UK
then and U.S. reliance on foreign credit now.  That may be Julio's point.

John