America's Military Expansion Funded by Foreign Central Banks

Preview from "The Global Economic Crisis: The Great Depression of the XXI Century"

by Michael Hudson


Large amounts of surplus dollars are pouring into the rest of the world.Central banks have recycled these dollar inflows towards the purchase of U.S. Treasury bonds, which serve to finance the federal U.S. budget deficit. Underlying this process is 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". Read more of this article here