Word: rearmaments
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...every wall calamity teetered: Korea, the strained U.S. budget, laggard Western European defense, the danger of German rearmament, the weakness of the Middle East and Africa, the limitations of U.S. atomic bombing, the possibility of atomic attacks on the U.S. No doubt the inspectors were right. Disaster lurked in all these places, and in others too. The U.S. horizon, however, could not be ringed with nothing but catastrophe. Some of that smoke was in the eyes of the beholders...
...French, who had only reluctantly agreed to German rearmament, chose to find grounds for hope in Moscow's vague reply. There was a lot of talk in Britain and France to the effect that the West ought to stand ready to delay or scrap West Germany's defense in exchange for Russian concessions. The fact remained that no conceivable concessions by Moscow could be worth a strong Germany in the Western camp. Washington remained cool to the Russian offer. But by merely crooking its diplomatic little finger, Moscow had managed to show up (and increase) the cracks...
...Japanese rearmament, with Australia and New Zealand reluctantly in favor, if adequate security guarantees can be devised...
...diamond-hard foundation based on production and efficiency. The U.S. had worked so hard, produced so much and expanded so fast in 1950 that it had met its most serious challenge: the creation of a strong and flexible economy thoroughly capable of switching over to full-scale rearmament. In the fight against Communist slavery, this was a more important fact than the intervention in Korea or the Brussels conference...
Nobody thought that inflation could be stopped completely, since tight controls had failed to do it during World War II. Economists guessed that the U.S. would be doing well if the general price level rises only 10% a year during rearmament. The great danger was that in trying to do the impossible, the Government would so straitjacket the economy with controls that the battle for production would be lost...