Sorry John You assume that Americans will sit and watch the Euro overtaking US $. No - for the following reasons 1. Already the Federal Reserve is considering introducing color bills both to avoid counterfeiting and making it easy to distinguish. So it will be called 'greenback' no more. 2. At later stage they may change the size of the bills to make it even more easier to distinguish. 3. If needed they may even replace the faces of political leaders (like Washington, Lincoln, etc) with tourist attractions like Capitol Hill, Statue of Liberty, Niagara, etc. Can the Europeans match.
If the Euro's strength really hurts US economy, then they will go for the final act 'Replace FFU with SI' - hope you like this. Madan --- kilopascal <[EMAIL PROTECTED]> wrote: > From: "kilopascal" <[EMAIL PROTECTED]> > To: "U.S. Metric Association" <[EMAIL PROTECTED]> > Subject: [USMA:20317] Re: Fwd: 'Euro-creep' starts > slowly > Date: Sat, 1 Jun 2002 14:16:04 -0400 > Reply-to: [EMAIL PROTECTED] > > 2002-06-01 > > The increase of the Euro at the expense of the > Dollar will hurt the American > economy. That is a fact! > > The US economy is heavily driven and dependant on > credit and debt. > Americans are encouraged to spend frivolously, even > if they don't have the > money to support such buying habits. The difference > is made up in buying on > credit. It is not uncommon for the typical US > consumer to be tens of > thousands of dollars in debt. And it is not > uncommon for said consumer to > pay little on that debt even as interest charges are > applied. > > In most countries, such a state could not exist > without causing a total > financial collapse, as was witnessed recently in > Argentina. But, America is > able to support its high debt by the investment and > confidence the world > holds for the dollar. The use of the dollar is what > pays for America's > debt. It keeps US bankruptcy laws weak, allowing > for citizens to default on > their debts without having the effect of causing the > banking system to > collapse. > > The US must take in 1.3 G$/day to support the debt > of the US economy. > Without that income, the debt must be supported from > other means. One of > those means would be to amend the bankruptcy laws > making payback of debt by > consumers and business a must. No more excusing of > bad debt. Consumers and > businesses that must use their limited incomes to > pay off debt, will not be > spending money on goods and services that stimulate > the economy. Thus a > further decline of the economy will result and an > increase in poverty. > > This is why the Canadian dollar and other currencies > are weak. There is > nothing fundamentally wrong with their economies. > The US government is just > as wasteful of money as any other government is. > Buy, Canadians and others > have no confidence in their own currency. That lack > of confidence > translates into a weak currency. If Canadians > supported their own currency > in both Canada and abroad, its value would increase. > But, they don't. They > belittle it. If only they knew that by doing so, > they are only hurting them > selves. If Canada seems to be stable, it is due to > the large reserves of US > dollars in their banks and businesses. > > So, when I say the increase in the value of the Euro > and the increased > confidence in the Euro will hurt the US economy, > this is what I meant. And > it should be that way. Why should Americans have a > free lunch and nobody > else can? > > American economists are frightened of the Euro. > They know the party is > over. What they don't know is how long they will > have to endure a weak > economy or what it will do to America's desire to > control the global > economy. > > So, now do you understand where I am coming from? > > John > > > ----- Original Message ----- > From: "Louis JOURDAN" <[EMAIL PROTECTED]> > To: <[EMAIL PROTECTED]>; "U.S. Metric Association" > <[EMAIL PROTECTED]> > Sent: Saturday, 2002-06-01 01:16 > Subject: Re: [USMA:20292] Re: Fwd: 'Euro-creep' > starts slowly > > > > At 20:02 -0400 02/05/31, kilopascal wrote: > > >2002-05-31 > > > > > >After carefully thinking about your conclusion, > I'm going to disagree. > You > > >are assuming that the dollar will remain at 80 % > and the Euro will only > > >replace the present usage for the Mark, the Franc > and the Pound Sterling. > I > > >expect that 80 % to dwindle, for the following > reasons: > > > > John, I agree with most points of your analysis > > > > >The exact amount of power the Euro will take from > the Dollar is unknown, > but > > >rest assured what ever it is, it will have a > negative effect on the US > > >economy. > > > > but here I disagree : there is no reason that the > euro damages US > > economy, on the contrary. What it could hurt is > the dollar supremacy > > in international financial transactions. > > > > In any case it will be a factor of equilibrium and > stability. > > > > Louis > __________________________________________________ Do You Yahoo!? Yahoo! - Official partner of 2002 FIFA World Cup http://fifaworldcup.yahoo.com
