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.
A rising euro threatens American dominance
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.
Posted by malct @ 09:30 AM (1028 views)
12 thoughts on “The question is a serious one because the U.S. Federal Reserve is pumping new dollars into the global economy at an astounding pace.”
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uncle tom says:
You have an unusual choice of reading material here malct!
The rise of the euro against the greenback looks (to me) speculative and not entirely rational – I can’t see any fundamental reasons why it should remain so high – I think we may well see it track back down again now.
techieman says:
….but it aint rising is it! Bit late on your observation UT – obviously too busy with the old grammar (couldnt resisit sorry only joking!). 16000 down to 15580 as i type this (100 down on the day) .
uncle tom says:
So it has, it’s taken a little dive this morning..
Rental John says:
Lets not forget that the USA is still a world superpower, the USA is a major importer of products, many global currencies are pegged to the dollar.
The Euro is a relative new comer – OK it is backed by the major central economies of France and Germany, but underpinned by former weaker economies such as Portugal, Spain, Italy, etc…..can Europ and the Euro take up the slack – or will the Euro be the target of the next round of speculation once the dollar is destroyed?
I can see the wave of USA sub-prime losses eventually crashing on the beach of Europe….we shall see I guess.
The old adage is still true – when the USA sneezes the world catches a cold.
malct says:
1. uncle tom said…
You have an unusual choice of reading material here malct!
WE know we can’t trust the BBC but we still watch it, listen to it, read it and quote it.
malct says:
tc where does all that come from?
http://www.lucasgray.com/video/peacetrain.html
planning4acrash says:
Wow, titan, that’s Bush n BBC’s view of Iran, how about yours?! You know full well that British and American intervention the past few hundred yrs make the Middle East What it is today, do you?!
planning4acrash says:
In summary, the Middle East has been corrupted by our intervention, and politicians say that more intervention, by them is the solution! Its not just gov’t intervention & political interference, its also corporate and banking influence.
malct says:
blimey did we just resolve an apparent head on collision with brief reasoned discussion?
I’ll sign up to p4ac’s summary to.
cornishman says:
“and politicians say that more intervention, by them is the solution”
– that’s the problem with politicians, isn’t it? They only have one trick and can only do more of the same if it doesn’t appear to be working. After all, if they thought about things and changed tack – they would be given stick by the media – either for being wrong in the first place or for changing their minds.
malct says:
back to Iran
Strange times we live in, are they not?
A woman Mrs malct knows is a practice manager for a local dentist. When it came to recruiting new staff the dentist happened to mention they could do it cheaper if they took the east european option. No chance, said my wife’s friend I’m not having foreigners taking ‘english’ jobs.
Only one small problem, the dentist, her boss, the man who provides her with employment and pays her wages is and Iranian !
Another dntist starts next week to do NHS work and she is a Russian.
Another surgery nearby has one Swedish and one Indian dentist, none of them can speak or hear english very well.
malct says:
rental john and others – if you ask for a password your comment will appear instantly
I know it’s a commitment and there are risks like datamining etc but
we’re all in the Sh!t anyway – why not give the barstewards a hard time