currencies hurt my head
Nearly all of the big wheeler-dealers of the world are afraid of any very fast dollar currency change. The transition to currency equalization will be gradual, IMO, and it’s not all about the euro.
I can see it now: international speculators and rap stars start putting their money into Euros, but then the dollar regains and then the Euro tanks. Ha ha ha!
Wasn’t the Euro released at around 1.30?
It only went to 90, because it PLUNGED against the dollar initially.
Now it’s back up.
Later, it will go back down. Then up. Then down.
Rumor is the Russians are getting ready to strike two zeros off their currency and issue new banknotes sometime in 2Q 2008. It will be a re-denomination instead of a re-valuing. Much like they did once before in the 90s. Instead of $1=R25 it will be $4=R1.
Bet in 5 to 6 years the Euro won’t be around.
The Euro coin is a very poorly designed monetary instrument. The first thing that comes to mind it that because of a poorly selected alloy and too much nickle content, cashiers and others who are required to handle it have to wear rubber gloves or develop skin rashes from the nickle.
“Vengence is mine” saith W.
“You screwed with me to protect thy markets. Enjoy life without markets”
“All Thy markets are mine”
If the Euro wants to be the world’s new reserve currency, the EU can have it. This article seems to indicate that Europe doesn’t want it.
For a long time, the British pound was the de facto medium of worldwide exchange. After WWII, the US dollar took over that role, one of many instances where the child (the US) took over some of the obligations of an aging parent (the UK).
Every nation on Earth that isn’t the US has the freedom to adjust the volume and value of its currency for economic benefit, but for half a century the US has had to deal with the fact that tweaking the dollar could destabilize the global economy.
Having the dollar as the preferred medium for international exchange is good for bragging rights, but is more a burden than a boon. International terrorist organizations have elaborate plants set up to counterfeit US dollars, something the US has had to fight. There was never a booming market for counterfeit Lira outside of Italy.
If the Euro becomes the preferred reserve and exchange currency, in the short term the dollar will drop further in value. In the long term, the Fed will no longer be tethered to international concerns. The US will be free to tweak its currency, just like everyone else. The Euro can have that if it wants it. Be careful what you wish for.
The main reason other countries want to keep their money in the U.S. (currency) is because the U.S. is the biggest, baddest muh-ther-humper in the world.
It is precisely because of our nuclear arsenal umbrella that people WANT to keep their 'treasure' in U.S. denominations. It is an insurance policy, sort of like keeping your gold in Fort Knox.
The rich Arabs don't want to keep their fortunes locked into the Euro... because Europe might just break apart or squabble into pieces in the near future.
Just look at history and you will see the future.
Name one country (civilization) in history which was dominate and had a weak currency.
A weak dollar means higher prices (inflation) for all Americans.
“and the euro has overtaken the dollar as the main denomination of international debt issues.”
This says volumes.
It seems obvious that reserves right now are slowly being moved out of the dollar, and some of that into the euro, but it is such a long process that no one wants to talk it up, but the number of prominent groups, countries, and others talking about this clearly says this is a front-burner issue for all major currency holders.