Hmm... I find most Wikipedia articles pretty good and
informative, including this one. I believe the whole purpose
of the Euro was to introduce a new reserve currency, so that
Europe could benefit from exporting inflation to Asia.
The Yugoslavia bombing by US then could have been done with
the purpose to undermine the young Euro, a short-term goal
that was achieved at the time. However, since this act of war
was sanctioned by the U.N., and there was an actual dictator
and actual genocide in that European country,
the act of war was not "outrageous" as the Iraq war. The Serbs
sure did find it just that, since over 100,000 civillians died in Belgrade.
The only reason the dollar didn't crash yet is
its reserve currency status. Note that the prior devaluation
of the dollar in 1985-87 was a result of some planned action,
rather then free market forces, the Plaza Accord
en.wikipedia.org
traderslog.com
and the Louvre Accord
en.wikipedia.org
An uncontrolled free market devaluation of a reserve currency
has probably never happened before. Perhaps, one could claim
that the fall of the British Pound was just that, from
$4 in 1940 to $1 in 1985. However, I am not sure that fall
qualifies, as the rates were fixed to the dollar until 1971. |
