Greenspan: Euro May Soon Replace Dollar
Back in 1971, the old WCG had the following in an article titled Rising World Colossus by Gene Hogberg:
Envision the startling future of Western Europe…
A “United States of Europe” possessing one single currency — a currency so strong that it will replace the U.S. dollar as the kingpin currency of world trade. A United Europe developing great military strength to protect its unprecedented standard of living and its Number One position in the world.
Visionary ideas?
Not at all. Such a European powerhouse is not just over the horizon…
It should be obvious that an expanding Europe will not forever tolerate monetary irresponsibility on the part of the United States…it is only a matter of time before the Europeans cut loose from the dollar…
Should the dollar fail, a new European currency would automatically become the kingpin currency financing world trade. The dollar would become an unwanted commodity.
This above prediction (which was based on interpretations of biblical prophecy while watching world events) is more clearly coming to pass as the following article shows:
Associated Press – Sept 17, 2007
FRANKFURT, Germany (AP) — Former U.S. Federal Reserve chairman Alan Greenspan said it is possible that the euro could replace the U.S. dollar as the reserve currency of choice. According to an advance copy of an interview to be published in Thursday’s edition of the German magazine Stern, Greenspan said that the dollar is still slightly ahead in its use as a reserve currency, but added that “it doesn’t have all that much of an advantage” anymore.The euro has been soaring against the U.S. currency in recent weeks, hitting all-time high of $1.3927 last week as the dollar has fallen on turbulent market conditions stemming from the ongoing U.S. subprime crisis. The Fed meets this week and is expected to lower its benchmark interest rate from the current 5.25 percent.
Greenspan said that at the end of 2006, some 25 percent of all currency reserves held by central banks were held in euros, compared to 66 percent for the U.S. dollar.
In terms of being used as a payment for cross-border transactions, the euro is trailing the dollar only slightly with 39 percent to 43 percent.
Comments by COGwriter:
Many still do not see “the handwriting on the wall”. Massive deficits in the USA, combined with a change in work and other ethics, are setting the dollar up for a serious fall which will occur later.
While we will see the Euro go up and down in the near term, the long-term trend is negative for the dollar. Europe will, with some major bumps ahead, surge forward.
The Greek 2 Euro coin shows a woman (Europa) riding a beast (allegedly Zeus, but biblically something a little different).
More on Europe can be found in the article Europa, the Beast, and Revelation
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