Sam Gindin wrote:

>The related question is where will they put the dollars?....They can't put
>it in Europe - Europe is already freaked at the rising Euro and would
>surely eventually respond - which would frustrate the intent of the shift.


I don't get this.  It seems to me that the euro was created precisely as an
alternative to the dollar, to serve not only as a reserve currency but also
as a transactions currency and a unit of account.  "Europe" may be freaked,
but what about the European Central Bank?  It hasn't even begun to take the
sort of actions (e.g., taken by the Bank of Japan) that would suggest that
the long-term strategy is not a euro to rival the dollar.

Tom Dickens

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