Link to article here.
Former Federal Reserve Chief, Alan Greenspan, indicates the Federal Reserve may shift its reserve currency to the Euro due to the decline of the dollar. As Jerry Corsi warns in his book, The Late Great USA, the Coming Merger with Mexico and Canada, that the collapse of the dollar is coming in large part due to “free trade,” which has undermined American wages and our national wealth which will subsequently open the door to the Amero. The excuse will go something like this. See, we can’t compete with the strong European Central Bank and the Euro, so we need to join with our regional North American partners, Canada and Mexico, to remain competitive in the “global market.” For a guy who criticizes Bush for abandoning smaller government, Greenspan’s rush to the Euro and centralized banking and governments is interesting if not hypocritical.
Greenspan: Euro Gains As Reserve Choice
Report: Former Fed Boss Says Euro Could Replace U.S. Dollar As Favored Reserve Currency
Monday September 17, 2007
FRANKFURT, Germany (AP) — 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 $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.
Greenspan said the European Central Bank has become “a serious factor in the global economy.”
He said the increased usage of the euro as a reserve currency has led to a lowering of interest rates in the euro zone, which has “without any doubt contributed to the current economic growth.”