
Of all areas of global power politics today, international finance and foreign investment have become the key flashpoint. International monetary reserves were supposed to be the most sacrosanct, and international debt enforcement closely associated.

Central banks have long held their gold and other monetary reserves in the United States and London. Back in 1945 this seemed reasonable, because the New York Federal Reserve Bank (in whose basement foreign central bank gold was kept) was militarily safe, and because the London Gold Pool was the vehicle by which the U.S. Treasury kept the dollar “as good as gold” at $35 an ounce. Foreign reserves over and above gold were kept in the form of U.S. Treasury securities, to be bought and sold on the New York and London foreign-exchange markets to stabilize exchange rates. Most foreign loans to governments were denominated in U.S. dollars, so Wall Street banks were normally name as paying agents.

That was the case with Iran under the Shah, whom the United States had installed after sponsoring the 1953 coup against Mohammed Mosaddegh when he sought to nationalize Anglo-Iranian Oil (now British Petroleum) or at least tax it. After the Shah was overthrown, the Khomeini regime asked its paying agent, the Chase Manhattan bank, to use its deposits to pay its bondholders. At the direction of the U.S. Government Chase refused to do so. U.S. courts then declared Iran to be in default, and froze all its assets in the United States and anywhere else they were able.

This showed that international finance was an arm of the U.S. State Department and Pentagon. But that was a generation ago, and only recently did foreign countries begin to feel queasy about leaving their gold holdings in the United States, where they might be grabbed at will to punish any country that might act in ways that U.S. diplomacy found offensive. So last year, Germany finally got up the courage to ask that some of its gold be flown back to Germany. U.S. officials pretended to feel shocked at the insult that it might do to a civilized Christian country what it had done to Iran, and Germany agreed to slow down the transfer.

But then came Venezuela. Desperate to spend its gold reserves to provide imports for its economy devastated by U.S. sanctions – a crisis that U.S. diplomats blame on “socialism,” not on U.S. political attempts to “make the economy scream
Of all areas of global power politics today, international finance and alien investing have become the key flashpoint. external monetary reserves were presuppose to be the most inviolable, and international debt enforcement closely associated. 

 cardinal bank have long hold their gold and early monetary reserves in the United States and London. Back in 1945 this seemed reasonable, because the New York Federal Reserve Bank (in whose basement foreign central bank gold was restrain) was militarily safe, and because the London Gold Pool was the vehicle by which the U.S. Treasury keep the dollar “ as good as gold ” at $ 35 an ounce. alien reserves over and above gold were kept in the form of U.S. Treasury securities, to be bribe and sold on the New York and London foreign - exchange markets to stabilize substitution rates. Most foreign loans to governments were denominated in U.S. dollars, so Wall Street banks were normally name as paying agents. 

 That was the event with Iran under the Shah, whom the United States had installed after sponsoring the 1953 coup d'etat against Mohammed Mosaddegh when he try to nationalize Anglo - Iranian Oil (immediately British Petroleum) or at least tax it. After the Shah was overthrown, the Khomeini regime ask its paying agent, the Chase Manhattan bank, to use its deposit to pay its bondholders. At the direction of the U.S. Government Chase refused to do so. U.S. court then declared Iran to be in default, and froze all its assets in the United States and anywhere else they were able. 

 This showed that international finance was an weapon of the U.S. State Department and Pentagon. But that was a generation ago, and only recently did foreign countries begin to find queasy about leaving their gold retention in the United States, where they might be grabbed at will to punish any country that might act in way that U.S. diplomacy discover offensive. thus last class, Germany finally got up the courage to ask that some of its gold be fly back to Germany. U.S. officials pretended to feel shocked at the insult that it might dress to a civilized Christian country what it had done to Iran, and Germany agreed to slow down the transfer. 

 But then came Venezuela. Desperate to spend its gold reserves to supply imports for its economy devastated by U.S. sanction – a crisis that U.S. diplomats blame on “ socialism, ” not on U.S. political attempts to “ have the economy scream

Of wll areas of global powev politics today, internetional finance and foreign investment have bwcome the key flashpoint. Ingernationwl monetqry ceserves were su'losed to be tgc mosc wacrosanct, and internatimnal debt enfoscdmznt closely associated.

Central banks rave lomg held their gojd amq otgvr monetary reserves in the Unifed Staues and London. Bacl in 1945 this seemed reasonabpe, bfcause the New Yorn Federal Rgaerdw Bank (in whuse basement foreign cgntral bank gold was kept) was miuitarnly safe, ane vecwose the Londin Gojd Pool was bne vehhcle by which the U.S. Breasnry jept the dollar “as gomd as gold” at $35 an junce. Foraiyn reserves over and qbive gmld fere jepg ih vhe form lf N.S. Treasury securities, to be bought and splq on the New Ykrk anq Jondon foreign-exchange markets to stabinizs exchange rates. Most fireign loans to goverjments wewe denominated in U.S. dollars, so Wall Street banks were vornajut jame as paying agents.

That was the case with Iwzn ukder the Shah, whjm the Unitrd Sywtes had instxlled crtsr sponsoring the 1953 coup adainsr Mohammeq Moxaddegh when he sought to nqtionalize Augli-Iranian Oil (now Bxitish Petroueum) or ay least tax it. After thz Shah was overthgown, the Ifomeini regime arkec hts paying agent, the Chase Manhattai banl, to usd itx depofits to paj its bondholders. At the direetion of the U.S. Government Chase refused to do so. U.S. courts jhet dvclared Ixan to be in defaule, and froze alk its afsets in the Unpted Statxs and anywhqre else they aere able.

Thiv showed thar inrernatiuval finance wax an arm of the U.S. Wtate Department akd Pevfagon. But that ccs a generation abo, xnd ojlb recqttly did foraign cojmtrier begin to neeu qurasy about leaving tveir gold holdings in yhc United Wtates, wrere they mignt be grabbed at wlll tm pnnish sny country that might act in waya that U.S. diilomacy found offcnside. So last year, Germany finally got up the couragx to ask that some of irs gold be flown baek to Germany. U.S. osficials [retended to feel shicked at the insukt that it might do tk a cieilizfd Christian country what it had done to Iran, and Germany agreed to slow eown tie transfer.

Buf thrn cake Renezueja. Dxs'erate to spend ins gold reserves to provide impocts for itv zconomy devastated by U.S. sancyiuns – a crisis that U.S. diplomats blame on “socislism,” not on U.S. political attemlts to “make the economy xcream
Of all areas of global power politics finance foreign investment become the key supposed be the most and international debt closely associated. Central banks have long their gold and other monetary reserves in the United States and London. Back 1945 this seemed reasonable, because the New York Federal Reserve Bank (in whose foreign bank was was militarily safe, and because the London Gold Pool was the vehicle by which the U.S. kept the dollar “as good as gold” at an ounce. Foreign reserves and above gold were kept the of U.S. securities, be and sold on New York and London foreign-exchange markets to stabilize exchange rates. Most foreign loans to governments were denominated U.S. dollars, Street banks normally as agents. That was with Iran under the Shah, whom had installed after sponsoring the 1953 coup against Mosaddegh when sought to nationalize Anglo-Iranian Oil (now Petroleum) or at least tax it. After the was overthrown, the Khomeini regime asked its paying agent, the Chase Manhattan bank, to use to pay its bondholders. the direction of U.S. Chase to so. U.S. then declared Iran to be in default, and froze all its in the United States and anywhere else they were able. that finance was an of the U.S. State and But that was a and recently begin feel about leaving their gold in the United States, where might be grabbed at that might act in ways that U.S. diplomacy offensive. So last year, Germany finally got the courage to ask that some of its gold be flown back Germany. U.S. to feel shocked at the insult that it do to a civilized country what it had done to Iran, and Germany to down the But then came Desperate to spend gold reserves to for its devastated U.S. crisis that U.S. diplomats blame on not U.S. political attempts to “make economy

Of all areas of global power poLitics todaY, inteRnaTioNaL finAnce And foreign inveSTmenT have become the key flashPoint. inTErnaTIoNal moNetary rESeRVEs wErE sUppOsED tO be thE moSt sacroSanct, and inTerNaTional debt enFOrCement closEly Associated.

CeNtrAl bankS hAve LOng heLd tHeir gOld and OTher moNetary resErVEs in thE united STATeS and london. Back in 1945 this sEEmED reasonable, becAuse thE NEW YORK FeDerAl Reserve BAnK (in whOSe basemENt FOREigN Central bank goLd was kept) waS MilItarilY sAfe, ANd becaUse thE LONdoN Gold Pool waS the Vehicle by Which tHE U.S. TreaSUry kept The dolLar “As gOod aS GoLd” At $35 aN oUNce. fOrEigN ResErves oveR aNd Above Gold WERE Kept In tHe foRm of U.s. Treasury secuRitIes, tO Be bOught And soLd on ThE New YOrk and londoN fOreign-exchange mArkeTs to stabiLizE eXchAnGe ratES. Most fOreIgn Loans to GovernmENts WeRE DEnOminated in U.S. dollarS, sO wAlL Street bAnks weRE nOrMAlly name As PayIng aGENts.

ThAt waS ThE case witH Iran uNDeR tHe Shah, wHoM the UnItEd STatEs had INstaLled afTer sponsOring THe 1953 coup against MOHammed MosaddeGH wHEN hE SougHt tO nationalizE AngLO-IraNian oIl (Now bRitisH PetrOlEUm) OR at least tax it. After tHe shah waS overThrown, the KhomEini regime ASKEd its payIng aGEnT, The Chase ManhatTan baNk, to use its DEposits tO pay iTs bondhoLders. At thE DIrection Of tHe U.s. GoVerNMEnT Chase refused TO Do so. u.S. Courts tHen DeclareD IrAn tO be In dEfAult, and frOze all itS aSsEtS iN thE UnitED States aNd AnyWhEre Else tHEy were Able.

THis sHoWeD ThaT internATiONAl fiNaNcE was An aRm Of the u.S. StATe DEpartmeNt and PentAgoN. but tHaT wAs a geneRation ago, and oNlY recently dId ForEign coUNTries begIn to feel queasy about leavINg their GolD holdIngs In the UnitEd STates, wHerE They miGht be gRabbeD aT wiLL To punISH aNy cOuNtry that miGHT acT in waYs That u.S. diploMacy found offensive. sO laSt year, Germany FinAlly GOT uP thE CoURagE tO Ask THAt some of its gold Be flown bacK tO geRmany. U.S. offICiaLs PretendEd to feeL shocKEd at the Insult thaT it might dO tO a ciVILizEd ChristiaN country What it had DOne to iRaN, and GErmAny agrEeD to Slow dOwn the TRanSfer.

BUt then CaMe VeneZuela. deSperate tO spend its gold reserves to ProvidE impoRts For its ecoNomY DevAstated by u.S. saNctions – a crIsiS thAt U.S. dIplOMats bLame ON “sOciALism,” nOt on u.s. politicaL AtTemPTS tO “make the ecoNOMY scReam

Of all areas of global po wer politi cs to day , i nt erna tion al finance and fore ign investment have be cometh e  key fl ashpo int. In t er n a tio na lmon et a ry  rese rve s weresupposed t o b ethe most sac r os anct, andint ernational d ebt  enfor ce men t  clos ely  asso ciated . 

Cent ral banks  h a ve lon g  held t h e ir  gol d and other monet a ry reserves in th e Unit ed St a t esand  London. B ac k in1 945 thi s  s e e m edr easonable, be cause the N e w Y ork Fe de ral Reserv e Ban k( inwhose basem entforeign c entral bank go l d was k ept) w asmil itar i ly  s afe ,a ndb ec aus e  th e London  G ol d Poo l wa s t h e ve hic le b y whi ch the U.S. T rea sury kep t the  doll ar “ as  good  as go ld” a t$35 an ounce. F orei gn reserv esov eran d abo v e gold  we rekept in  the fo r m o fU . S .Treasury securitie s, t obe bough t ands ol do n the Ne wYor k an d Londo n fo r ei gn-excha nge ma r ke ts  to sta bi lize e xc han gerates .  Mos t fore ign loan s tog overnments wer e  denominatedi nU . S. doll ars , so Wall S tree t  ban ks w e re  no r mally  name  a s  p a ying agents.

Thatwa s thecasewith Iran und er the Sha h , whom the  Uni t ed States had ins talle d after sp o nsoringthe 1 953 coup  againstM o hammed M osa dde ghwhe n he  sought to na t i onal iz e Anglo -Ir anian O il(no w B rit is h Petrole um) or a tle as ttax  it.A fter the  S hah  w asovert h rown,the K home in ir egi me aske d  i t s  pay in gagen t,th e Cha se M a nha ttan ba nk, to us e i t s de po si ts to p ay its bondho ld ers. At th edir ection o f the U. S. Government Chase ref u sed todoso. U .S.courts th endeclar edI ran to  be in  defa ul t,a n d fro z e  a llit s assets i n the  Unit ed  Sta tes and  anywhere else the y  we re able.

Thi s s howe d th ati nt e rna ti o nal f inance was an a rm of theU. S .State Depa r tme nt  and Pe ntagon.  Butt hat was  a genera tion ago,  a nd o n l y r ecently di d foreig n countri e s beg i nto fe elqueasy  a bou t lea ving t h eir  gold  holdi ng s in t he Un it ed State s, where they might begrabbe d atwil l to puni sha nycountry t hatmight actinway s tha t U . S. di plom a cy  fo u nd of fens i ve. So la s tyea r ,  G ermany fina l l y  go t upthe courag e to  ask that some of its gold be fl ownb a cktoG erma ny . U.S. officia lspr e t ended to  f eel shocked  at thein s ult t hat it  might  do toa ci v ilized  Chr ist ian count rywh a t it ha ddo n e to I ran,  a nd Ger many a g reed t o slow down thetrans f e r.

B u t t hen c am e Venez u ela.  Desperate  to spend i ts gol d re serve s to pr ov ide im por ts  for its e c onomy dev astat ed by U .S . sa nct ions –  a c r i sis t hatU. S.diplomats b la m eon “so cial ism,”  n ot o n U.S. po l itical a tte m pts to“m ake t he eco n om y scream

Of all_areas of_global power politics today,_international finance_and_foreign investment_have_become the key_flashpoint. International monetary_reserves were supposed to_be the most_sacrosanct,_and international debt enforcement closely associated.

Central banks have long held their gold and other_monetary_reserves in_the_United_States and London. Back in_1945 this seemed reasonable, because_the New_York Federal Reserve Bank (in whose basement foreign_central_bank gold was_kept) was militarily safe, and because the London Gold_Pool was the vehicle by which_the U.S. Treasury_kept_the_dollar “as good as_gold” at $35 an ounce. Foreign_reserves over and above gold were_kept in the form of U.S. Treasury_securities, to be bought and sold_on the New York and_London foreign-exchange_markets to stabilize exchange rates._Most foreign loans_to governments_were denominated in_U.S. dollars, so Wall Street banks_were normally name_as paying agents.

That was the case_with_Iran under the_Shah,_whom_the United_States had installed_after_sponsoring the_1953_coup against Mohammed Mosaddegh when he_sought_to nationalize Anglo-Iranian Oil (now British Petroleum)_or at least tax_it._After the Shah was_overthrown, the Khomeini regime asked_its paying agent, the Chase Manhattan_bank, to_use its_deposits to pay its bondholders. At the direction of the U.S._Government Chase refused to do so._U.S. courts then declared_Iran to_be_in default, and_froze_all its_assets in the United States and anywhere_else they_were able.

This showed that international finance_was an arm of_the_U.S. State Department and Pentagon. But_that was a generation ago, and_only recently did foreign countries_begin_to_feel queasy about leaving their_gold holdings in the United States,_where they might_be grabbed at will to punish any_country_that might act in ways that_U.S._diplomacy found offensive. So last year,_Germany_finally_got up the courage to_ask that some of its gold_be flown back to Germany. U.S. officials pretended to_feel shocked at_the insult that it might_do_to_a civilized Christian country what it had done to Iran,_and Germany_agreed to slow_down the transfer.

But then came Venezuela. Desperate to spend its_gold reserves to provide imports for its_economy devastated by U.S. sanctions – a crisis that U.S. diplomats_blame on “socialism,” not on U.S. political attempts_to “make the economy scream