The Age of Imperialism, Part III

  • Harry Magdoff
Keywords: Imperialism


The highly complex interrelationship between the international monetary system and U.S. financial operations comprises, as we have seen, a series of arrangements which have produced the seeming miracle that the United States has grown richer and more powerful in the face of, and indeed because of, a longterm deficit in its balance of payments. This ironic paradox is possible because the balance-of-payments deficit is used to finance three types of overseas activity which are crucially important to the U.S. world position: private investment, military expenditures, and the government foreign aid program.