By 1965 the pool was increasingly unable to balance the outflow of gold reserves with buybacks.[1] Excessive inflation of the US money supply, in part to fund the Vietnam War,[2][7] led to the US no longer being able to redeem foreign-held dollars into gold, as the world's gold reserves had not grown in relation, and the payment deficit had grown to US$3 billion.[8] Thus, the London Gold Pool came under increased pressures of failure, causing France to announce in June 1967 a withdrawal from the agreements[9] and moving large amounts of gold from New York to Paris.[4]