Tuesday, November 27, 2007

Will the Euro become the new reserve currency?

Image from Bank of Finland

Jerome a Paris on DailyKos looks forward to it. Given Republican reckless mismanagement of our nation's finances, I wouldn't be surprised if the Euro becomes the new "safe" currency. I hate to see America weakened, but I can't blame people for betting against the dollar right now.

Of course, a Democratic administration might start to clean things up, just as Bill Clinton helped do in the 1990's (with a huge assist from a booming economy). But the destructive Republican ideology will still be there, ready to waste it all on wars, giveaways to the rich, and corporate handouts. Looking at America from the outside, I might be thinking, "Do I really want to bet on a country that re-elected Bush in 2004? Sure, they might get their act together, but why risk it?"

We need more than just a Democratic victory in 2008. We need a re-alignment of our politics. I don't see how else we can regain our moral and financial standing in the world.


Blogger ogre said...

Will it? I think it's only a question of closing the barn door.

The best that's likely to happen for the dollar now is that a sane president will salvage things enough that the dollar and euro will serve jointly. But it's entirely possible that the Dollar Era is nearly at an end.

5:09 AM, November 28, 2007  

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