Report: Greenspan says euro could replace U.S. dollar as reserve currency of choice

[rodeodance]

Source: AP



Report: Greenspan says euro could replace U.S. dollar as reserve currency of choice

The Associated Press
Monday, September 17, 2007

FRANKFURT, Germany: 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.

According to an advance copy of an interview to be published in Thursday's edition of the German magazine Stern, Greenspan said that the dollar is still slightly ahead in its use as a reserve currency, but added that "it doesn't have all that much of an advantage" anymore.

The euro has been soaring against the U.S. currency in recent weeks, hitting all-time high of US$1.3927 last week as the dollar has fallen on turbulent market conditions stemming from the ongoing U.S. subprime crisis. The Fed meets this week and is expected to lower its benchmark interest rate from the current 5.25 percent.

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.

Read more: http://www.iht.com/articles/ap/2007/09/17/business/EU-FIN-MKT-Germany-Greenspan-Euro.php

[roamer65]

1. Mr. Greenspan...Chairman Bernanke on "line 1" for you...

:evilgrin:

I'd love to be a fly on the wall for that discussion.

[Javaman]

2. so is greenspan dying or something?

needs to somehow cleanse his soul before he gets judged? mr. housing bubble needs more than telling a few near truths and scapegoating truths to do that.

[no_hypocrisy]

3. I agree. Why would oil countries continue with petrodollars if they

continually lose value?

These countries can do the math by looking at our $9 TRILLION federal debt and $45+ TRILLION capital outlays in the future. We simply don't have the money nor the human capital to back the money that we do have.

[HereSince1628]

4. Wow, Greenspan loses job and takes out a contract on the US?

Seems maybe HE is THE GUY that has bet so much on the economy going in the crapper.

And the odd thing is he is one of the few people in the world that could sink stock prices with little more than a comment on a business show on MSNBC.

[enid602]

9. Him and Cheney

n/t

[EVDebs]

5. When is this mofo going to read Kevin Phillip's Wealth and Democracy and put down Ayn Rand's BS ?

[spotbird]

6. Sounds like Greenspan

has already converted all his investments into Euros.

[HereSince1628]

7. Was that a BINGO I just heard from the back row????? Yes! A BINGO!

Greedy, Creepy old man with WAYYYYYYYYYYYYYYYYYYYYY too much influence.

[earth mom]

8. Today Matt Lauer asked Greenspan if we are close to a Recession....

Greenspan said not yet.

Meanwhile...I was thinking Depression, instead of Recession. :(

[Lone_Star_Dem]

10. But wait...This just in: Greenspan: Recession risk up - Reuters

I kid you not.

By Mark Felsenthal

WASHINGTON (Reuters) - Risks of a recession have increased, but the Federal Reserve must be cautious in supporting the economy because global forces that have kept inflation in check are receding, former Fed Chairman Alan Greenspan said on Monday.

"Earlier in the year, I was talking about a one-third probability of a recession," Greenspan told Reuters. "It's come up somewhat, but it's still at this stage somewhat less than 50 (percent)."

He said the biggest risk to the outlook for the U.S. economy would be a substantial fall in house prices. The economy could weather a mild decline in home values as long as there is a decrease in new home construction and inventories of unsold homes clear, the former Fed chief said.

"But if the whole thing festers, it will erode household balance sheets and eventually impact on what the critical support has been in this economy: consumer expenditures," he said.

http://www.reuters.com/article/topNews/idUSN1717834820070917?feedType=RSS&feedName=topNews

What do you want to bet that by the time he's done pimping his book he'll raise that to 75% chance?

[sarcasmo]

11. Time to stock up on the canned goods.

[DetlefK]

12. heard that somewhere before...

"Well, it's rather brutal here. Right now we are advising all our clients to put everything they've got into canned food and shotguns."
Gremlins 2 :D:D:D