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

**Lydiaswingert** · 12-28-2006, 09:25 PM

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.

Is it really melodramatic to say that the US empire is in decline? Hardly.

I seem to recall that the last time we got ourselves into a military morass, one of the results was the liquidation of what remained of the gold standard. Since that's already been done and can't be done again, I wonder what we'll do this time to offset our enormous losses, aside from continuing to tell ourselves that there's no problem at all thanks to our enormous GDP, blah blah blah?

12-28-2006, 09:25 PM	#14
Lydiaswingert Join Date Oct 2005 Posts 535 Senior Member	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. Is it really melodramatic to say that the US empire is in decline? Hardly. I seem to recall that the last time we got ourselves into a military morass, one of the results was the liquidation of what remained of the gold standard. Since that's already been done and can't be done again, I wonder what we'll do this time to offset our enormous losses, aside from continuing to tell ourselves that there's no problem at all thanks to our enormous GDP, blah blah blah?
	Quote