Greenspan: Euro Could Replace U.S. Dollar As Favored Reserve Currency

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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.

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.

Greenspan said the European Central Bank has become "a serious factor in the global economy."

He said the increased usage of the euro as a reserve currency has led to a lowering of interest rates in the euro zone, which has "without any doubt contributed to the current economic growth."

It's good that the Euro is proving itself after the bashing from Americans and EU citizens which were afraid of the currency change several years ago. In the long term if won't make a difference though, as everyone is on the same boat. We are all too dependent on the US economy, we, the world, allowed the US to have such a deficit and now we all share the consequence.

You better prepare yourself for the misery to come sooner than you'd expect, yes, we're living in interesting times.

If so get ready for WWIII. The power brokers that have been using the petro-dollar ponzi scheme to prop up endless deficit spending are not shy about using military force to maintain the status quo. It could be that some of them are jumping ship to the euro however. The idea here is that secret deals have been struck for foreign countries to sell commodities such as oil and maybe even manufactured goods from China, in dollars in return for a guaranteed purchase of US treasuries. This creates a demand for treasuries allowing for endless deficit spending. It's supposedly one reason why alternative energy sources can not be allowed.

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