Friday, April 25, 2008
The question is a serious one because the U.S. Federal Reserve is pumping new dollars into the global economy at an astounding pace.
As the dollar continues its relentless six-year slide against the euro and other main currencies, the question is being asked more and more: what would it mean if the dollar ceded its global dominance to the euro? What about America’s political power in the world? A continuing fall in the dollar means a fall in the global purchasing power of all its foreign assistance, whether for humanitarian, economic or military purposes.