...the US will look like Britain in 1946

John
St Paul Minnesota


The Vietnam War provided the capital for The Gulf states to buy out the Western Oil companies in the late sixties and early seventies. The US government didn't want to create shortages in the domestic economy by either rationing or allowing prices to rise, but instead used oil from the gulf for the Seventh Fleet. The US government didn't raise taxes or cut other spending to finance the war, the famous Guns AND Butter choice.
The result of that policy was an understanding that the Dollar was in for trouble. The French started cashing Dollars into gold at $ 35/ounce, and the Gulf States forced the Oil companies to sell their concessions to the host countries at an oil price of approximately $ 3/barrel. At the first opportunity, 1973 Yom Kippur War, they quadrupled the price of oil, the first oil shock.
At this point the pent up inflation from the Vietnam War kicked in with vengeance. We ended up with over 12% inflation and interest rates went to the moon.
They say history repeats itself the first time as tragedy, the second time as farce. The current wars started by the previous administration clearly count in the farce category. These wars have produced the capital drain to China that will.inevitably end the same way as the Vietnam War capital drain. There will be a massive inflation and the Federal Reserve will end up raising interest rates to keep foreigners in Dollars, and the American People will pay severely for these crazy policies.
In the end the US will look like Britain in 1946.