Financial Times: Euro notes cash in to overtake dollar

[DeepModem Mom]

Euro notes cash in to overtake dollar
By Ralph Atkins in Frankfurt
Published: December 27 2006

The US dollar bill’s standing as the world’s favourite form of cash is being usurped by the five-year-old euro.

The value of euro notes in circulation is this month likely to exceed the value of circulating dollar notes, according to calculations by the Financial Times. Converted at Wednesday’s exchange rates, the euro took the lead in October.

The figures highlight the remarkable growth in euro notes since their launch on January 1 2002, three years after the start of Europe’s monetary union, which in January welcomes its 13th member – Slovenia, the former Yugoslav republic.

“After the launch, we expected growth to stabilise – but it has continued over five years,” Antti Heinonen, head of the European Central Bank’s bank notes directorate, told the Financial Times.

Although the ECB does not deliberately promote the international use of the euro, it has become popular in official foreign exchange reserves – even if it is far from challenging the dollar’s lead as the most popular reserve currency....

http://www.ft.com/cms/s/18338034-95ec-11db-9976-0000779e2340.html

[dave_p]

1. Hail the euro!

It's great having a currency that isn't utter wank. Why anyone would want dollars as a reserve currency beats me, unless it's like some attachment to a soiled baby-blanket reminiscent of bygone days. Almost makes you want the things - almost, but not quite.

[Xenotime]

2. Europe will be able to buy the US in the next 10 years

[Tempest]

3. They'll have to negotiate it from China first

China practically owns the U.S. today.

[Xenotime]

4. Good point.

[Psephos]

5. This is good news for the US

US exports become cheaper; US imports become more expensive. Result: US sells more, imports less.

I hope the dollar goes down another ten percent versus the Euro. The main reason Euros are at a premium is because European central banks are paying higher interest rates. Why? Think about it.

Peace.

[LeftHander]

6. Bring a new meaning to "Made in America"....nt

[AngryAmish]

7. Why are the central banks payng a higher interest rate?

Because they have to. Isn't it a good thing for the Fed to be paying lower interest rates, since we (US citizens) have to pay the interest on the bond?

I also hope the dollar devalues. Less imports, more exports. The yen and yaun have been kept very low for a long time.

[billbuckhead]

8. That would be true except the US hardly makes anything but food&weapons

I don't see German cars or Asian electronics getting less in demand.

[Psephos]

9. Aircraft, software, financial services, farm equipment, semiconductors, plastics, pharmaceuticals..

The U.S. is the world's #1 industrial economy. That won't be changing anytime soon, much to the chagrin of many salon sages.

As you mention in your post, guns and butter are also major-league mainstays.

Peace.

[billbuckhead]

10. EU has trade surplus with China similar to our trade deficit

The best goods in almost every field are European or Japanese.

[Javaman]

11. And what exactly do we manufacture in mass quantities that the

other nations of the world want? The world (china) is already sucking our resources dry and china produces everything now.

[BluePatriot]

12. Oil well supplies *hee*

[AngryAmish]

13. Caterpillar

The best in the world.

[nealmhughes]

14. Yep, we kick butt when it comes to industrial stuff, air compressors, HVAC,

cranes, etc. even Germany can't beat us at that. GE generators, are the world's top choice, Onan diesels, and a lot of other things that are never going to be on a ChinaMart shelf.

[Javaman]

16. Good point...

What I would love to see is a break down of what we export as consumables.

That is where china is killing us.

[Psephos]

15. Aircraft, software, financial services, farm equipment, semiconductors, plastics, pharmaceuticals

Stupendous quantities of agricultural products. Equally massive amounts of armaments. Don't forget about entertainment and media products, too. Movies, books, videogames, television shows, internet media, music, and on and on. GM is still the number one maker of automobiles in the world, too (although it will probably be surpassed by Toyota in 2007).

It has become fashionable to denigrate American industrial output. I don't understand, in the era of Google, why people choose not to look up the facts before forming an opinion. They're not hard to find.

Politics and religion are the enemy of truth when they cause us to substitute beliefs for facts.

BTW, that's not directed at you, Javaman. Just making a general statement. :-)

Peace.