US dollar losing supremacy

a couple of news stories......

Young euro threatens dollar supremacy

BARRIE MCKENNA

From Thursday's Globe and Mail

WASHINGTON — Flash the greenback just about anywhere in the world, and chances are you'll seal the deal.

The mighty U.S. dollar remains the world's default currency. Central banks keep two-thirds of their reserves in dollars.

Oil, gold and most farm products are all priced in dollars. A little green will even get you a fake Prada handbag in Shanghai or a cab ride in Havana.

And yet the U.S. currency is facing its first serious challenge in decades from the infant euro, now five years old.

BUT!
"At the end of last year, the euro quietly reached a key milestone. The value of all euro notes in circulation exceeded the value of all dollars for the first time — $828-billion (U.S.) to $753-billion.

another story........................

from the Financial times:

Euro displaces dollar in bond markets

By David Oakley and Gillian Tett in London

Published: January 14 2007 22:08

The euro has displaced the US dollar as the world’s pre-eminent currency in international bond markets, having outstripped the dollar-denominated market for the second year in a row.

The data consolidate news last month that the value of euro notes in circulation had overtaken the dollar for the first time. Outstanding debt issued in the euro was worth the equivalent of $4,836bn at the end of 2006 compared with $3,892bn for the dollar, according to International Capital Market Association data.

Outstanding euro-denominated debt accounts for 45 per cent of the international - or cross-border - market, compared with 37 per cent for the dollar. New issuance last year accounted for 49 per cent of the global total.

That represents a startling turnabout from the pattern seen in recent decades, when the US bond market dwarfed its European rival: as recently as 2002, outstanding euro-denominated issuance represented just 27 per cent of the global pie, compared with 51 per cent for the dollar.

None are more hopelessly enslaved than those who falsely believe they are free.
Johann Wolfgang von Goethe

Dude, you spelled losing wrong.

Well if the U.S. Dollar sinks, so goes the Canadian dollars.

Time for a United North America

I agree that the US dollar has lost alot of its supremency in international markets? However, I don't see the dollar being replaced, but rather getting itself a partner. Before the Euro, the dollar was really the only safe currency you had. Yes you had the individual Eurpean currencies and the Yen, but the monetary policies of those nations usually resulted in depreciation of those currencies. With the Euro, the central bank is committed in stopping out inflation, reducing the chances of depriation. Banks see this as a safe currency, which it is. And looking at their vaults full of greenbacks, it wouldn't be a bad idea to have something else to fall back on.

The dollar is slipping due to runaway spending by both political parties, unsound lending practices by US banks and the Federal Reserve, a trade policy that has consistently stripped the US of wealth and jobs in every year since 1961, and an education policy that has created millions of ignorant serfs who cannot compute basic mathematics, who do not know their history, and whose knowledge of the Constitution is limited to "the Constitutional separation of church and state" which is not actually in the Constitution.

In a nutshell, the country is being run by people who are elected by stupid people. And the dollar is predictably hurting.

I'll tell your this with some confidence, BartSimpson and TheFoundersIntent were first in line for Fahrenheit 9/11 at the movie house. :roll: