1. Eisenhower applied financial leverage by threatening to sell US reserves of the British pound and thereby precipitate a collapse of the British currency.

2. 20 The larger point is that the same forces that make Chinese mercantilism so damaging right now also mean that China has little or no financial leverage.

3. Furthermore, we find a positive relationship between abnormal returns and human capital intensity and a negative one with both the manufacturing industry membership and financial leverage.