Quote:
Originally Posted by DBlack
If China switched to the Euro, that would be devastating to the US dollar. The economics is quite simple; as the single currency system grows in cross-country usage/acceptance, so does it's stability, buying power and and value.
It immediately drive down the value of a dollar, thereby increasing the cost of everything we import and export to Euro based economies. And where there's money, there's power.
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Possibly, but then again perhaps not. Most countries realize that the US is still the biggest market for their wares at this point in time (yeah, I know China's huge population makes it a viable market in the future but it's not there yet). Euro based countries may want to talk a good game but they don't want to get into any kind of a trade war that could threaten what currently is their bread and butter market.