this article is at least 5 yrs old, but a must read......................From Feasta
By Cóilín Nunan
''This US trade deficit has now reached
extraordinary levels, with the US importing 50%
more goods and services than it exports. So long
as the dollar remains the dominant international
currency the US can continue consuming more
than it produces and, for example, build up its
military strength while simultaneously affording
tax cuts.
Getting a share of this economic free lunch has
been one of the motivations, and perhaps the
main motivation, behind setting up the euro2
.
Were the euro to become a reserve currency equal
to, or perhaps even instead of, the dollar, countries
would reduce their dollar holdings while building
up their euro savings. Another way of putting this
would be to say that Eurozone countries would be
able to reduce their subsidy to American
consumption and would find that other countries
were now subsidising Eurozone consumption
instead.''
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