Report: Former Fed Boss Says Euro Could Replace U.S. Dollar As Favored Reserve C

[ms]

 
 
     

AP
Greenspan: Euro Gains As Reserve Choice
Monday September 17, 8:07 am ET 
Report: Former Fed Boss Says Euro Could Replace U.S. Dollar As Favored Reserve Currency


FRANKFURT, Germany (AP) -- Former U.S. Federal Reserve chairman Alan Greenspan said it is possible that the euro could replace the U.S. dollar as the reserve currency of choice.
According to an advance copy of an interview to be published in Thursday's edition of the German magazine Stern, Greenspan said that the dollar is still slightly ahead in its use as a reserve currency, but added that "it doesn't have all that much of an advantage" anymore.

ADVERTISEMENT
 
 
 
 
 
The euro has been soaring against the U.S. currency in recent weeks, hitting all-time high of $1.3927 last week as the dollar has fallen on turbulent market conditions stemming from the ongoing U.S. subprime crisis. The Fed meets this week and is expected to lower its benchmark interest rate from the current 5.25 percent.

Greenspan said that at the end of 2006, some 25 percent of all currency reserves held by central banks were held in euros, compared to 66 percent for the U.S. dollar.

In terms of being used as a payment for cross-border transactions, the euro is trailing the dollar only slightly with 39 percent to 43 percent.

Greenspan said the European Central Bank has become "a serious factor in the global economy."

He said the increased usage of the euro as a reserve currency has led to a lowering of interest rates in the euro zone, which has "without any doubt contributed to the current economic growth."

http://www.stern.de
 

[Dee]

This is not a NEW news item. It has been ignored by the U.S. ,and I believe will be our finiancial ruin here. JMOO

[jh45gun]

I guess we will see but Greenspan has said some other stuff in the past that did not pan out either. Lets face it now that a lot of countries have banded together to have the same currency it does make a certain amount of sense that the Euro could give the dollar a run for the money. That however does not neccessarily mean the dollar is weak or will fail.

[Dee]

Well, perhaps you have not listened to the news, reporting that the dollar is continuing to weaken, as the euro continues to strengthen. The U.S. is LOOSING control of the world market, of which it has had by the throat for the better part of 60 years, after WWII. This fact is what pulled us out of the depression of 1929.
History indeed may repeat itself, in regards to a depression. Failing businesses, government meddling in foreign, AND domestic affairs, jobs leaving the country, a national debt of 13+ TRILLION dollars, and a government debt of 9.8+ TRILLION DOLLARS, the housing market is in ruins, and the mortgage companies are in SERIOUS TROUBLE, because of defaulting home loans, and foreclosures are at an all time high.
Our government is spending money like water, and the citizenry of America seems to be asleep to the fact. It is only a matter of time before the printing of more money backed by NOTHING hits the end of the proverbial rope. The U.S. is THE MOST indebted nation in the WORLD, and has been for some time. This cannot continue, and the condition WILL adjust itself eventually.

[magooch]

News Flash--the dollar is being replaced with the Euro.  I have been appointed that task of making the exchange.  You guys can get in on the ground floor by sending me all of your defunct U.S. dollars and I will send you the correct amount of Euros in exchange.  E-mail me and I will give you shipping instructions.  Trust me.