World`s Reserve Currency.

[schizo321]

The UK's pound sterling was the primary reserve currency of much of the world in the 18th and 19th centuries. But perpetual current account and fiscal deficits financed by cheap credit and unsustainable monetary and fiscal policies and the relative decline of Britain from being the world's pre-eminent military and economic power led to the pound losing this status.

Hmmmmm.

[M.Dancer]

The UK's pound sterling was the primary reserve currency of much of the world in the 18th and 19th centuries. But perpetual current account and fiscal deficits financed by cheap credit and unsustainable monetary and fiscal policies and the relative decline of Britain from being the world's pre-eminent military and economic power led to the pound losing this status.

Hmmmmm.

You mean it has nothing to do with the rise and preeminace of the USA as an industrial power?

Hmmmmm

[obsidian]

its called coming out of WWII completelty unscathed with a huge military industrial complex ready to adapt and supply the rest of the world which happened to be in ruin.

what is the point of this post?

[ScottSA]

its called coming out of WWII completelty unscathed with a huge military industrial complex ready to adapt and supply the rest of the world which happened to be in ruin.

what is the point of this post?

I'm not sure. What is it? The US strode the world after WW II as an economic behemoth while Britain was faced with economic collapse. You simply can't make the stretch you're trying to make here.

If you actually look to the history books, you'll find that the reason Britain became what she became in the first place was from running deficits during the Napoleonic campaigns; it allowed it to convert its economy into an industrial economy while France lagged behind precisely BECAUSE it wouldn't take the leap that Britain did.