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You keep on mentioning the franc, but the more relevant comparison would be with the DM - and there, the numbers are quite strikingly unfavorable to the dollar, which has lost about two thirds of its value against the DM (just like the franc did, until the late 80s) in that period.

In the long run, we're all dead. John Maynard Keynes
by Jerome a Paris (etg@eurotrib.com) on Sat Jan 6th, 2007 at 07:42:54 AM EST
[ Parent ]
Three reasons for this.

First, because its personally relevant, but this is surely not the most convincing reason.

Second, because it hints at the future. France was a major player (arguably the major instigator), via converting dollars to gold, in ultimately bringing about both the collapse of Bretton Woods and the financial crisis which resulted in the collapsed dollar in the early 1970's. And example of how a medium size power like France can bring about what I'm refering to, without necessarily fully intending to do so.

Third, because France's tactics in trying to modify the terms of Bretton Woods (conversion of dollars to gold, counter proposals to Bretton Woods) were arguably very similar to the sorts of central bank activities and pronouncements (like the ROK last year) about dollar holdings today, and underline the similar weakness both of Bretton Woods and of the more multi-lateral and consensual arrangement which has evolved and which has left USD at the center of a global finance dilemma supposedly solved by ditching Bertton Woods - the Triffin Dilemma.

Germany wasn't doing any of this, it was France. So while I know that in today's perspective DM is more appropriate, in yesterday's (ie 1960's and 1970's) perspective I'd argue this is not as much the case.

Nil aon leigheas ar an ngra ach posadh

by redstar on Mon Jan 8th, 2007 at 10:38:46 AM EST
[ Parent ]

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