Britain had spent blood and treasure to beat the Nazis, and was hoping for a gift of $3 billion, a credit line of $5 billion, and other generosity. But President Harry Truman, advised by communist spies such as Harry Dexter White, insisted on terms so onerous that the pound was supplanted by the dollar and Britain was, in the view of some, expelled from the first rank of economic powers for decades, until Margaret Thatcher decided that her government’s job was not to manage decline.

Fast forward to today, and the plunging dollar. The Obama administration may mouth support for a strong dollar, but traders know better. In the short run, the White House hopes that a combination of protectionism and a cheap dollar will reduce the flow of imports and increase the volume of exports. That will create jobs “right here in America” as the Wal-Marts of the country switch to domestic suppliers.

In the longer run, the administration knows that it will somehow have to repay the huge debts it is incurring as it attempts to stimulate the economy, throws another trillion at healthcare “reform”, and prepares