Quote:
Originally Posted by SaintessHeart
I am thinking about the fallout.....the Eurozone is created to consolidate a cooperative economy, then political and strategic alliance. They had to build an economic capability as an alliance first, but with that half-way done and if they are to drop it, especially when many other currencies are being traded against the Euro and that the greenback is losing its value, which other standard currency could be used as a global credit to trade against?
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Well, there were and still are a few other
hard currencies.
It's true that in term of volume, most of the trade is done using USD or Euro as a reference, but if you look back in history, the Euro basically took the place of the Deutsch Mark, which was at the time the hardest currency, as Germany was also the World's 1st exporter.
Even as it became the 2nd World Economy, the JPY never made as much of the Banks Reserves, same for the GBP, as those were quite mobile currencies.
But if we look at the current economical landscape, which is vastly different, I got the feeling that EU countries out of the Eurozone will be better off, and that the Yuan might become a major currency, as China has taken Japan's place, and if they manage to stop underevaluating it.