[A-List] Rep Ron Paul (R-TX) Speech: The End of Dollar Hegemony

Gary Santos garysantos at tri-isys.com
Sun Feb 19 12:27:39 MST 2006

Yes, it was a feather in Henry's hat. For one, I first was made aware of it
from Henry. But, I think Hudson should also be given  credit.

----- Original Message ----- 
From: "Henry C.K. Liu" <hliu at mindspring.com>
To: "The A-List" <a-list at lists.econ.utah.edu>
Sent: Sunday, February 19, 2006 11:57 AM
Subject: Re: [A-List] Rep Ron Paul (R-TX) Speech: The End of Dollar Hegemony

> Do a Google search on the term Dollar Hegemony and see whose name come
> up most. As for Michael book, its a very good book. But the term dollar
> hegemony deos not appear in it. I helped to convince his publisher to
> publish a new edition in 2003 and helped edit Michael's new preface for
> it. Michael and I are close friends and see eye to eye on many
> subjects.  If you ask Michael directly he will acknowledge that the
> specific term dollar hegemony to summarize the role of the dollar under
> neo-liberal finance globalization first appeared in print in my 2002
> Asia Times article and on the Internet some years before as early as
> 1998 in my posting to several lists.  Gary Santos knows that as we had a
> public exchange on some list before and he told me that "it is a feature
> in your hat" for having coined the term, or some words to that effect,
> which was not the way I was thinking about it.  Many people contributed
> to public awarness of emreging trends and I no doubt benefited from
> exchange swith Michael after I was invited to join Gang8. Michael
> introduced me to Ann Willaimson and the three of us talked over dinner
> once at my house from 8 pm to the following morning non stop on many
> subjects.  But as a matter of record, the term dollar currency, which
> appeared to have gain some currency, first was coined by me in 2002, for
> which I gave a very clear definition:
> World trade is now a game in which the US produces dollars and the rest
> of the world produces things that dollars can buy. The world's
> interlinked economies no longer trade to capture a comparative
> advantage; they compete in exports to capture needed dollars to service
> dollar-denominated foreign debts and to accumulate dollar reserves to
> sustain the exchange value of their domestic currencies. To prevent
> speculative and manipulative attacks on their currencies, the world's
> central banks must acquire and hold dollar reserves in corresponding
> amounts to their currencies in circulation. The higher the market
> pressure to devalue a particular currency, the more dollar reserves its
> central bank must hold. This creates a built-in support for a strong
> dollar that in turn forces the world's central banks to acquire and hold
> more dollar reserves, making it stronger. This phenomenon is known as
> dollar hegemony, which is created by the geopolitically constructed
> peculiarity that critical commodities, most notably oil, are denominated
> in dollars. Everyone accepts dollars because dollars can buy oil. The
> recycling of petro-dollars is the price the US has extracted from
> oil-producing countries for US tolerance of the oil-exporting cartel
> since 1973.
> Henry C.K. Liu
> Gary Santos wrote:
> >I would like to add that Prof. Michael Hudson, Univ of MI, who wrote a
> >in the circa 1971/1972 on post 1971 US balance of payments should be
> >credited with the concept of dollar hegemony. My understanding is that
> >paper is available in the NYU Business library. The term he prefers for
> >phenomenon is the "US Treasury Bill Standard" (as in monetary standard).
> >followed up with a book, Super Imperialsim, published in 1972 which,
> >two/three years ago, is on its second edition.
> >
> >http://michael-hudson.com/
> >
> >----- Original Message ----- 
> >From: "Henry C.K. Liu" <hliu at mindspring.com>
> >To: "The A-List" <a-list at lists.econ.utah.edu>
> >Sent: Saturday, February 18, 2006 11:55 PM
> >Subject: Re: [A-List] Rep Ron Paul (R-TX) Speech: The End of Dollar
> >
> >
> >
> >
> >>When I first used the term on several discussion lists, I was rebuffed
> >>by many American economists as being anti-US. I officially coined the
> >>term "dollar hegemony" in 2002 on the Internet with an article: US
> >>Dollar Hegemony has got to go.
> >> http://www.atimes.com/global-econ/DD11Dj01.html
> >>
> >>The term now is widely used and its gratifying to see that it has
> >>finally made it onto the floor of Congress.
> >>
> >>Henry C.K. Liu
> >>
> >>
> >
> >
> >
> >
> >
> >
> -- 
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