[Jordi]

Two of the strongest economies in Europe are the UK and Sweden,and are outside the Eurozone.Two of the world strongest currencies (albeit not very big) are the Swiss franc and the Norwegian krona. If these four join the Eurozone, this article could make sense. It's most likely to happen since Ireland and Spain are in and it proves the Euro itself doesn't lower growth possibilities of member states,

[zencat]

Except that Italy is already calling the Euro a calamity for their economy. Greece as well.

There's definitely infighting.

[garyhope]

Way premature. If they European countries don't start dropping like flies.

[Boundless]

Will France be able to resist printing Euros if their
economy tanks?

Will the EU controls on inflation be able to prevent it?

Film at 11 (2011).

[Busywhiskers]

Gosh....one more thing to lay awake at night worrying about.

[in hoc signo vinces]

A few things to consider when pondering this article.

1. Article is from "Reuterville", and where exactly is there HQ now?

2. The authors are from "Harvard" and "University of Wisconsin" two socially and governmentally liberal institutions whose faculty are well known Europhiles. (Meaning they would love to see the dollar fall.)

3. The Euro has been around a while now...long enough for people to realize that the only thing backing the currency is...well the paper it's printed on, and the Eurozone's requirement of it's use...it's not backed by any considerable "economic" force.

This is just wishful thinking on the part of those whose agenda would have all of us beleive the Europeans have the best way of life...simply not true.

[Frenetic]

They've said this before and we haven't seen it. The U.N. is a failure, the European Union failed, it's currency will fail too. Reason? Confederacies don't work.

[kaylar]

On July 21, China -- with the second biggest reserves hoard in the world at $711 billion -- changed its yuan target regime from a fixed dollar peg to one shadowing a basket of currencies.

The author presents the Chinese action as a reaction against the dollar (and at least implicitly for the euro). But as freepers know, the US has been cajoling the Chinese to depeg for quite awhile now. So suggesting that this Chinese move is a reflection of the dollar's weakness doesn't seem accurate.

[FreeRep]

I like what Ronald Reagan said, "We should make the dollar sound, respected again, not have it yo-yo in value as it has been for the last few years. The dollar should be worth a dollar today; it should be worth a dollar tomorrow."

[Milwaukeeprophet]

Germany is economically and demographically dying .The Germans are demoralized like they were in 1920 .France is becoming islamic faster than they realize. Holland is on its way to become islamic . Italy has no growth and will likely leave the Euro Zone if recession persists .Spain was the net recipient of billions in subsidies from the EU and will go into economic decline when they end next year.the Euro is a currency without a state and with no future .The Brits would more likely become Germans than give up the pound ... The Euro is a socialist dream like the European Superstate .It will have the same end

[Eagles Talon IV]

Reuters? 'nuff said. As long as there are terrorist or any other serious problems that can affect the economies of then world, the USA will be the 1st best safe haven for others to shield their currency. Lately I have read where Italy wants to dump the euro and Britain doesn't seem to want any part of it nor does Sweden. The major nations within the EU routinely violate their own rules by running excessive deficits and then doing nothing about them as i the case of France, Germany and I believe Italy.

AS long as we are the worlds wealthiest and most powerful nation on the planet ours will be the currency of choice. Perhaps Reuters is hoping for an end to the terrorism problem so that the USA is not so necessary for their survival as it is today. of course that said, the French and the Brits are taking a tougher stance on the ragheads in their nations then we are.

[MNJohnnie]

WASHINGTON, Aug 5 (Reuters) - The euro could supplant the dollar as the world's dominant reserve currency within 20 years if Britain and other European Union countries adopted the unit and the greenback continues to slide, a recent study showed.



Most delusions. The dollar is the reserve currency of choice because it is by far the most stable. The other problem is we are the worlds biggest market. The pathetic economic growth rates in old Europe mean they will never generate the consumption to replace us. Also, This just more of the "United Europe" unleashed hysteria, Like France "boast" that they are going to supplant Boeing. Hate to tell all you doom and gloomers this but Finance is VERY conservative. Almost a century after the sun set on the British Empire London is still one of the primer fiscal capitals in the world.

[MNJohnnie]

Second is the role of U.S. economic policies and the risk that they might undermine confidence in the dollar through inflation and depreciation.

Oh I see. Europe, which is in far worst shape economically, magical undoes 50 years of rabid socialism and fixes all it's fundamental structural flaws and the United States, basically elects nothing by Biden-Kerry-Clinton style Democrat-Socialists Congress etc to to ruin the Govt here and destroy our economy. Then once those two miracles happen, all the people who have invested in the US and who make their money in the US are suddenly going to rush out and convert....oh wait, who is going to want to give up all those gold wonderful Euroes for our pathetic loser Dollars???? It could happen, my chances of having Jessica Simpson give me a lap dance in the next year are BETTER then the Euro's chances, but it COULD happen.

[Purple GOPer]

Here are the two things you need to read in the article to realize what a puff piece this really is:

"First was the scope for expansion of the euro zone so that it tops the gross domestic product of the United States and envelops London's dominant international financial center."

Not going to happen for the many reasons cited in other peoples posts.

"Second is the role of U.S. economic policies and the risk that they might undermine confidence in the dollar through inflation and depreciation."

This is assuming that the deliberate lowering of the dollar from all time highs a few years ago continues at the same rate for decades - also not going to happen.

[Gatún(CraigIsaMangoTreeLawyer)]

“Two of the strongest economies in Europe are the UK and Sweden.”

I read here on FR that Sweden has the same GDP (gross domestic product) as Arkansas. Arkansas is the fifth poorest state in the union. This isn’t saying too much for the Swedes.

“The euro could supplant the dollar as the world's dominant reserve currency within 20 years if Britain and other European Union countries adopted the unit and the greenback continues to slide, a recent study showed.”

Dream on. Only if we stood still and stopped growing.