[Toddsterpatriot]

It could well be, but I don't know that it has to be deflationary. That's certainly a worry if you're a debtor.

Or a producer. Or both (farmers).

The French repatriated dollars for gold and we either had to reign in the dollar and suffer recession, or break the last link to gold and risk inflation.

I remember reading about that. Didn't they repatriate the dollars we gave them as bank reserves after WWII? The French, screwing with America for over 200 years!!

[Pelham]

This is a very interesting article concerning the French, the Kennedy administration, and the demise of Bretton Woods. At least one French official was our loyal ally, as you will see. I haven't read it all, I'll have to get back to it when I can:

http://www.utexas.edu/lbj/faculty/gavin/articles/giscard_ball.pdf