Do you think the euro is likely to replace the us dollar as the major currency?
- Thread starter tzna
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interesting discussion....i understand that the european banks are much more fragile than the US banks. and, certainly, the euro is in a major downtrend.
there is much info on the 'net re globization of money...the amero, the yuan, and the euro....not sure where the african and middle east will stand.
some conspiracy theorists might aruge that this bank debuckle, like the one at the turn of the century was engineered by the banking cartel so seize more control....certainly the fed has come out of this much stronger.
ultimately, i do not believe you can sustain divided interests...the fed/central banks will ultimately fail
there is much info on the 'net re globization of money...the amero, the yuan, and the euro....not sure where the african and middle east will stand.
some conspiracy theorists might aruge that this bank debuckle, like the one at the turn of the century was engineered by the banking cartel so seize more control....certainly the fed has come out of this much stronger.
ultimately, i do not believe you can sustain divided interests...the fed/central banks will ultimately fail
Be advised that your professors are much more likely to be Euro fans then foes - especially if you are attending a university in the US. When talk about establishing the Euro began, many people immediately forecast the end of the USD as the world currency. These people let their hatred of capitalism color their thinking, and academia is home to many of them.
A paper that pleads the case of a dominate Euro will be accepted on it's face as solidly researched and well thought out. A paper that exposes poor thinking by Eurofans will be thoroughly examined for errors.
I could be wrong, though. You might have gotten lucky and your prof reads a lot of Ludwig. Maybe you should ask some cautious questions to determine what school of thought your profs follow.
The Euro is almost as weak as the US dollar.
I think a gold backed Dinar will replace the dollar as world's reserve currency within 5 years, mainly out of a total distrust for FIAT currencies as the competitive devaluations take their toll on people's savings.
Another possibility would have been the Yuan if it were gold backed, but given that most of China's reserves are US dollar treasury notes, like so many other FIAT currencies, I see it as just as dangerous as the dollar, as a result.
I think a gold backed Dinar will replace the dollar as world's reserve currency within 5 years, mainly out of a total distrust for FIAT currencies as the competitive devaluations take their toll on people's savings.
Another possibility would have been the Yuan if it were gold backed, but given that most of China's reserves are US dollar treasury notes, like so many other FIAT currencies, I see it as just as dangerous as the dollar, as a result.
The dinar? Which one? There's a few floating around these days.
Doubt it though, regardless of which one you're referring to.
The dollar became the reserve currency after WWII not because it was backed by gold, it was the strong industrial base that guaranteed that treasury bonds would survive to maturity.
Most dinars are ultimately supported by oil, which is hardly a constant to produce as easy-to-reach reserves are depleted.
What's needed is a different economic system for cross-border exchange. Most likely, a net-zero system of trade to keep prices and inflation in check.
The new GCC Dinar that I think will be needed to buy oil post 2010.
They need to still be able to sell oil, but need to make sure what they get in return is money that will hold its value. This would force oil consuming nations to buy GCC Dinar on the open market at whatever exchange rate the market deemed reasonable for their FIAT paper.
They need to still be able to sell oil, but need to make sure what they get in return is money that will hold its value. This would force oil consuming nations to buy GCC Dinar on the open market at whatever exchange rate the market deemed reasonable for their FIAT paper.
Not anymore.
Just like "In the long run housing prices always go up" is not true. To assume they WILL always go up was and is foolish.
Its no different for assuming the dollar will always be a "safe haven". It is no longer deserving of that honor, and eventually as a result, things will change.
Perhaps that will be the "change" Pres Obama brings.