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"Euro notes cash in to overtake dollar

Published:

Last Edited: December 28, 2006, 1:49 pm

Ever consider it may not be US politics "forming world opinion" but careful engineering by leftist brainwashing media used in a concerted effort to drive the US dollar down in value so that the Euro will dominate the world currency market???? 

Crystal clear to me, makes perfect sense, leaves a crumb money trail right back to world money market manipulation/engineering. 

Feel 'had'..?????? ....... Aanyone believing the media doesn't have an agenda should because US$ value impacts every aspect of our lives.


 

"Euro notes cash in to overtake dollar
By Ralph Atkins in Frankfurt

Source FT.com

Published: December 27 2006 22:07 | Last updated: December 27 2006 22:07

"The US dollar bill's standing as the world's favourite form of cash is being usurped by the five-year-old euro.

The value of euro notes in circulation is this month likely to exceed the value of circulating dollar notes, according to calculations by the Financial Times. Converted at Wednesday's exchange rates, the euro took the lead in October.

The figures highlight the remarkable growth in euro notes since their launch on January 1 2002, three years after the start of Europe's monetary union, which in January welcomes its 13th member - Slovenia, the former Yugoslav republic.

"After the launch, we expected growth to stabilise - but it has continued over five years," Antti Heinonen, head of the European Central Bank's bank notes directorate, told the Financial Times.

Although the ECB does not deliberately promote the international use of the euro, it has become popular in official foreign exchange reserves - even if it is far from challenging the dollar's lead as the most popular reserve currency.

News that euro notes are challenging the dollar may cheer eurozone politicians - even if it partly reflects the currency's strength - but it may have a dark side too. Fast growth in the highest denomination notes, especially the €500 note, has raised suspicions that they are popular among criminals, although the ECB plays down this factor.

By the end of October the $759bn-worth of US dollar notes in circulation was only a fraction ahead of the value of euro notes, converted at exchange rates at that time.

But since October the euro has risen strongly against the dollar and this month the value of euro notes has risen to more than €610bn, or in excess of $800bn at the latest exchange rates. That level is unlikely to have been beaten by the greenback. "

 

http://www.ft.com/cms/s/18338034-95ec-11db-9976-0000779e2340.html  

Entry #717

Comments

1.
csfbComment by csfb - December 28, 2006, 6:50 pm
Was in Eastern Europe a month or so ago. The mighty dollar is still very strong and accepted; but yes, the euro is widely used and getting stronger. Something to watch.
2.
Comment by LOTTOMIKE - December 28, 2006, 8:04 pm
what would happen if the euro overtakes the dollar as currency of choice in foreign countries? is that bad for america.really curious.
3.
konaneComment by konane - December 28, 2006, 8:11 pm
Strong US dollar means our money buys more for us, weak dollar inflation and buys less ... everything costs more.

Iran is converting from the US$ to Euro for oil sales, I believe Venezuela is also. Every time money is converted from one currency to another, US$ to Euro there are conversion fees which means that oil will cost more even IF the dollar were stable and didn't fall in value as predicted.

Not savvy as I should be on world markets but believe these are simple basics. Anyone who knows more about international currency is more than welcome to comment.
4.
cps10Comment by cps10 - December 28, 2006, 8:15 pm
konane - this is correct...simple economics. I even worry about the dollar when going to Mexico and the Caymans in February. However, in my estimation, I think this is a market correction, and shouldn't be anything to worry about. As far as Iran converting, that makes sense for them to do so based on the number of countries over there that deal with the Euro. Remember, the U.S. isn't the only oil-consuming country in the world! :)
5.
konaneComment by konane - December 28, 2006, 8:44 pm
Thanks cps10!! No, nor will we be the biggest in the very near future. China is set to overtake us in oil consumption soon.

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