But when the world tires of the US currency as the worlds trading currency, watch out.
When the world finds another superpower with the financial, political, cultural, and military clout to back its currency up, then I would agree.
I don't think the Euro will be there for some years. They have the same economic problems we have, and as of yet, lack the cultural unity/indentity to sustain them through difficult times. Some of their economies are going into recession while others, such as Ireland, are growing too fast. No matter what policy the ECB follows regarding interest rates, one country or another in this confederation is going to feel serious pain and the political ramifications that go with it.
Look at how the US faired under the original Articles of Confederation. It was chaos until they all sat down and wrote out a Federally based constitution that centralize power in a national gov't. (and I'm sure there were the inevitable conspiracy theorists at that time who complained about how they were subverting their god-given freedom and rights to a Federalist "tyranny".
In fact, wasn't state's rights one of the major reasons the Civil War occurred? I believe it was. Look how their confederation turned out...
Regards,
Ron |
