A new world currency?

[OntarioVanMan]

The euro surged to a record high against the U.S. dollar yesterday, touching $1.4731, a 65 per cent gain since the end of 2001.

Analysts say the euro has become the main threat to the U.S. dollar's dominance; while political leaders worry its rising value is hurting European exports.

The euro made its debut as an accounting currency in 1999 and was put into wide circulation as physical money in 2002.

It is the currency of the 13-country euro zone, which includes Austria, Belgium, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal, Slovenia, Spain and Finland.

In December 2006, the combined value of all euro notes in circulation exceeded that of the U.S. dollar for the first time.

 

[greg334]

OVM,
The Euro is artificially propped up by the countries themselves and the free trade between the countries is not free trade at all, but very regulated.

There have been numerous economist who have pointed out that the gains that the Euro have made can be ripped down if there is another constitutional crisis at the EU level or they continue to regulate trade within the EU where there are export quotas that continue to stifle investment. Coupled with the problems that some of the counties themselves have with instability in the government on specific issues sounding like immigration and rioting (France more specifically) and other things like what Greece is facing. If Turkey gains access to the EU, this opens the door up for serious problems if they have a change in government - the EU army will have to declare a state of emergency and occupy Turkey.

As a side bar, I think the purpose of NATO is no longer needed and the money we put into this former need can be put to better use by putting back into our armed forces.