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>Just a quick note that the US is equally powerful in the financial arena as they are militaristically, if not more so. This was the trade off Churchill was fo
by throwaway_tech 7y ago
>Just a quick note that the US is equally powerful in the financial arena as they are militaristically, if not more so.
This was the trade off Churchill was forced to agree to, as London was being bombed by the Nazis, if he wanted the US to join the war. Before the War the UK ran the World's finance, after the War it was the US. In short the US financial power was birth directly from its military power.
- mlazos 7y agoI don’t think it was a deliberate agreement per se, I feel like it was just the natural outcome after the US helped rebuild a lot of Europe. The previous world order had been ripped apart by the war, and the US was the world’s largest economy by the end.
- mars4rp 7y agoIt was deliberate, on one of the financial summits over the future of financial system after WWII a US changed all the word of GOLD to USD. there was a planet money episode about it.
- dv_dt 7y agoYes it was agreed upon that the US Dollar became the underpinning of international finance at the Bretton Woods conference near the end of WWII. https://en.wikipedia.org/wiki/Bretton_Woods_system https://en.wikipedia.org/wiki/Bretton_Woods_system This has a link to the PMoney episode you're thinking of, as well as a more recent discussion of the economic fight other nations possibly trying to supplant or at least be adjacent to the dollar as a reserve currency. https://www.npr.org/sections/money/2019/07/30/746337868/75-years-ago-the-u-s-dollar-became-the-worlds-currency-will-that-last https://www.npr.org/sections/money/2019/07/30/746337868/75-y...
- chii 7y agoIt's the "hidden" rewards of winning the war. The US didn't take any territory (cept leaving bases behind). But they can reap the financial control and profit immensely via this indirect control. This is why the US does not want https://en.m.wikipedia.org/wiki/BRICS https://en.m.wikipedia.org/wiki/BRICS to succeed and will do much to sabotage it. In the world of politicking, there are no good guys - just lesser of evils (or better the devil you know).
- Aeolun 7y agoIt was also pretty much the only economy left standing. I don’t think that can be overstated enough.
- SamReidHughes 7y agoThe entire New World was left standing.
- Nasrudith 7y agoTrue. The US was an industrial behemoth before even formal involvement in the War and was preposterously powerful in the area. They didn't have it diminished by bombing and gained manufacturing capacity instead of losing it. While others were unscarred they never "stood up" by the standards of the world scale even if they were also industrialized.
- rswail 7y agoIt was not the UK that ran/runs the world's finance, it's the tax haven of the City of London, with its overseas branches in UK territories that still runs the world's finances. Current CT: Brexit has to happen before 2020 because otherwise City of London will be subject to EU rules that will cause current anonymities to be revealed.
- cm2187 7y agoI am not aware of any tax that is specific to the City of London. How is it a tax heaven? And half of finance in London is not even located in the City (West End and Canary Wharf). The UK is certainly not a tax heaven.
- NeedMoreTea 7y agoHaven, not heaven. :) The city has had the deserved reputation for being a tax haven for well over a century. https://www.newstatesman.com/economy/2011/02/london-corporation-city https://www.newstatesman.com/economy/2011/02/london-corporat...
- cm2187 7y agoThanks. Got caught exactly by what this website describes [1]. “Heaven” was logical from French. [1] https://jakubmarian.com/is-it-tax-haven-or-tax-heaven-in-english/ https://jakubmarian.com/is-it-tax-haven-or-tax-heaven-in-eng...
- NeedMoreTea 7y agoInteresting - didn't know most other languages had it as paradise.
- epanchin 7y agoThe title is the only part of that page suggesting the City itself is a tax haven.