In
1914, when the FED started printing the first banknotes, the international
trading system was under the rule of the British pound. But, only eight months
later, in August 1914, the First World War transformed the dollar into the main
international currency. The United States remained neutral until April 1917,
when it declared war on Germany. With the war, the US government spending
increased fifteen times, causing it to borrow from the FED. The same happened
to the European allies and the FED favored the indebtment of nations by lending
the dollars generously. At the end of World War I, the FED had become the main
player on the world stage.
The Vital Needs Theory - page 80