The Future of the Dollar
U.S. Financial Power Depends on Washington, Not Beijing
On January 19, 1960, Japanese Prime Minister Nobusuke Kishi and U.S. Secretary of State Christian Herter signed a historic treaty. It committed the United States to help defend Japan if Japan came under attack, and it provided bases and ports for U.S. armed forces in Japan. The agreement has endured through half a century of dramatic changes in world politics -- the Vietnam War, the collapse of the Soviet Union, the spread of nuclear weapons to North Korea, the rise of China -- and in spite of fierce trade disputes, exchanges of insults, and deep cultural and historical differences between the United States and Japan. This treaty has lasted longer than any other alliance between two great powers since the 1648 Peace of Westphalia.
Given its obvious success in keeping Japan safe and the United States strong in East Asia, one might conclude that the agreement has a bright future. And