This new and updated edition of Michael Hudson's classic political economy text explores how and why the US came to achieve world economic hegemony. Originally published as the sequel to Hudson's bestselling Super Imperialism, Global Fracture explores American economic strategy during a key period in world history.
In 1973, many of the world's most indebted countries sought to free themselves of trade dependency and the debt trap by creating a New International Economic Order (NIEO). This aimed to improve the terms of trade for raw materials and build up agicultural and industrial self-sufficiency.
Global Fracture shows how the US undermined this progressive initiative and instead pushed for financial dominance over the rest of the world. Today, the NIEO is a forgotten interlude, its optimism replaced by the financial austerity imposed by the IMF and the World Bank.
Exploring how America achieved its economic aims, and tracing the implications this has had through subsequent decades, Michael Hudson covers various topics including trade embargoes, changing US attitudes to foreign aid, the rise of protectionism, government regulation of international investments, the impact on specific industries including the oil industry, the implications of the new economic order and the future of war.
Michael Hudson is an economist who has worked for Chase Manhattan Bank, Arthur Andersen and Co., and the Hudson Institute. He has taught at New York University and the New School. He is author of Global Fracture (Pluto, 2005) and Super Imperialism (Pluto, 2003).
Preface Introduction to New Edition Introduction to First Edition Part I An American World 1. Pax Americana 2. The Treasury-bill Standard Versus the Gold Standard 3. Third World Problems 4. Cold War Strains Resolve Themselves in Detente Part II Global Fracture 5. The Events of 1973 6. U.S. Trade Strategy Culminates in Export Embargoes 7. The Oil War Transforms World Diplomacy 8. America's New Financial Strategy 9. Closing the Open Door to World Investment 10. The Ending of U.S. Foreign Aid 11. America's Steel Quotas Herald a New Protecionism 12. The Ending of Laissez Faire 13. Basic Objectives 14. World Financial Reform 15. New Aims of World Trade 16. Government Regulation of International Investment 17. The Future of War 18. Some Implications of the New International Economic Order 19. The American Response Notes Index