DiscussWorldIssues - Socio-Economic Religion and Political Uncensored Debate - View Single Post - Euro replaces Dollar as worlds favorite cash

**sarasaraseda** · 12-28-2006, 09:00 PM

As the sun sets on the American Empire, with the dollar in retreat, along with American power and prestige, are we ready to take our place as "just another country", rather than the world's dominant power?

Ye gods - what drama! The Euro is doing well right now because the European economies are growing more rapidly than the US at this point in the economic cycle, as our interest rates are peaking. It is to be expected. The Euro is still quite a new currency, and it will certainly be a very significant factor in the world economy as it reflects many affluent nations.

The EU has serious structural problems, including chronically high unemployment and high deficits among its largest members (Germany, France, Italy). Ironically, it is the mid-sized nations - the Netherlands, Ireland, Denmark, Austria - that set the pace. This will be a problem for the Euro at times, just as our own problems have an impact on the dollar.

There is no need for the end-of-the-world routine. In the 80s, an entire industry was built on the assumption that Japan's economy would take over the world. There is absolutely nothing left of that. In the 70s, books were written about the destruction of the US economy through inflation. There is nothing left of that either. Sorry to burst your melodramatic bubble.

The really interesting story is the power of the UK currency. Britain's pound is a powerhouse. There will be no reason for the Brits to even consider moving to the Euro at this point.

12-28-2006, 09:00 PM	#13
sarasaraseda Join Date Oct 2005 Posts 604 Senior Member	As the sun sets on the American Empire, with the dollar in retreat, along with American power and prestige, are we ready to take our place as "just another country", rather than the world's dominant power? Ye gods - what drama! The Euro is doing well right now because the European economies are growing more rapidly than the US at this point in the economic cycle, as our interest rates are peaking. It is to be expected. The Euro is still quite a new currency, and it will certainly be a very significant factor in the world economy as it reflects many affluent nations. The EU has serious structural problems, including chronically high unemployment and high deficits among its largest members (Germany, France, Italy). Ironically, it is the mid-sized nations - the Netherlands, Ireland, Denmark, Austria - that set the pace. This will be a problem for the Euro at times, just as our own problems have an impact on the dollar. There is no need for the end-of-the-world routine. In the 80s, an entire industry was built on the assumption that Japan's economy would take over the world. There is absolutely nothing left of that. In the 70s, books were written about the destruction of the US economy through inflation. There is nothing left of that either. Sorry to burst your melodramatic bubble. The really interesting story is the power of the UK currency. Britain's pound is a powerhouse. There will be no reason for the Brits to even consider moving to the Euro at this point.
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