| actually, i think the foreign money has nowhere else to go.
The Euro is 15 economic basket cases headed over a demographic cliff as their populations age, because they aren't even reproducing themselves. Meanwhile, the geography is filling up with Muslims. The Euro a long-term store of value? It is to laugh. As a currency, the Euro is nothing but hype. The Yen would make more sense, but the job is too big for Japan's britches. Besides, they got that nut in Korea to worry about, who might lob a few nukes at 'em just to cause trouble. Nobody's going to bet on a country that could be turned into glass in five minutes by North Korea. Who's left? The communists in China? The Ruble? Oh, my sides! These guys will all buy some Euros just to wave their swords at us, but they won't buy very many before they start wondering how many is too many. You don't want to be holding Euro-denominated bonds when the Muslims take over; paying interest is forbidden by the Koran. When all is said and done, you are absolutely right: these guys have nowhere else to go. If you want to be holding a currency where the country is still going to be here in 30 years, you buy ours. |
You got it, bro. Just listen to these journalism majors tell us that we gotta worry about that Euro taking over the role of the world's reserve currency.