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To: carranza2 who wrote (36453)	7/2/2008 10:07:40 AM
From: TobagoJack	Read Replies (1) \| Respond to of 217572

but cb ilaine doesn't get it, and when buygold is altruistically suggested, gets denigrated all different ways a puzzle

To: carranza2 who wrote (36453)	7/2/2008 9:43:46 PM
From: energyplay	Read Replies (3) \| Respond to of 217572

To become the new reserve currency, you have to be more stable than other options when the switching cost is taken inot account. The USD looks good from Argentina, of course, and a number of other places. ;-) A cut in ECB rates would take pressure off the USD and remove some upward pressure on the Euro. Consider the switching costs - if your currency appreciates rapidly, it can kill both your export industries and imports will take a big slice of your domestic industry - and that will happen long before there is much benefit from being able to pay your debts by printing your own currency. So I don't see the Euro or Japanese Yen being 'voluntered' to be the new reserve currency.