(Nov. 9, 1978)

While the dollar was falling and rising, the Europeans were negotiating a new form of monetary union: the creation of a kind of deutschemark zone in Western Europe. This was no coincidence.

Just as the sovereignty of the nationstate is personified by the ability to create money, so the form and status of international money is an expression of changing power relationships. The events of the last few weeks merely confirm America‘s decline and the growing importance of Western Europe, dominated by West Germany.