12 April 2008
The euro is now second to the weak U.S. dollar as a reserve currency held by foreign investors and has risen sharply against the dollar in recent months, hitting a new all-time high of $1.5912 on Thursday.
Almunia said the euro area is now "playing an increasingly important role in supporting the stability of the world economy and the global financial system."
So the "weak dollar" is still the primary currency held by foreign investors? Why would they want to hang onto reserves in a currency headed for recession/depression/global meltdown?The EU official called for the 15 euro nations to share a single seat when world leaders meet to discuss the economy at the International Monetary Fund or the G-7 group of top seven industrialized nations.
In the G-7, this would come at the expense of euro users Germany, France and Italy which now represent themselves at these talks.
Wonder why they didn't mention the United Kingdom? They're part of the EU and the G7. Do they keep their own seat? Or maybe they're not quite on board with this idea because it sucks and the author wants to conveniently "overlook" this?Demand all you like EU. The United States loves people who demand things from them. If you want more say in the global economy, fixing your own might be a good start.
Posted by: Stashiu3 at
12:44:36
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Last I checked--a couple of weeks ago--the British pound was up to almost $2USD. By contrast, ten years ago, it fetched in dollars roughly the same as the euro fetches now or a little more ($1.59-1.64 USD when I was on vacation there in the early 90s--last time I've been overseas).
Whether this is just a technical way of snubbing the UK, or whether the currency based view of the G7/IMF makes sense, I'm not enough of an economist to say.
Posted by: kishnevi at 12 April 2008@15:06:24 (FFHuv)
Posted by: Stashiu3 at 12 April 2008@15:16:23 (tarqT)
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