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To: RaceBannon

Uh, are people like the OP actually reading this propaganda?

The UAE will continue to hold nearly 90% of its reserves in dollars. Every other central bank on the planet already holds far more of its reserves in dollars than it should and than it did even during much of the Clinton boom years. When they are diversifying "away from the dollar" they simply mean they are lowering their percentages of dollars held. Not a one is looking to replace the dollar with the euro. Most are talking about moves that would still result in dollar reserve holdings outnumbering the euro - assuming this is a trend that extends well into the future, even - 2 and 3-to-1.

The circulation of euros vs circulating dollars is essentially a non-event, much of which is explained -- and glossed over -- by these very articles. And, as one of these articles notes, the euro is "nowhere near" challenging the dollar's role as a reserve currency.

CIRCULATING BILLS ARE NOT A MEASURE OF RESERVES HELD.

Do you understand that? It simply means what it says: CIRCULATING BILLS.

There's a reason you find this stuff being trumpeted primarily in the Financial Times, and if you're not aware of why that is then you're not paying nearly enough attention to be creating threads about currency and currency reserves.


13 posted on 12/28/2006 3:10:15 AM PST by Sandreckoner
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To: Sandreckoner

Wait until the newly elected liberal Congress have their way with our currency. They have 14 years of horrible economic times and tax cuts to undo. (partial sarcasm)


15 posted on 12/28/2006 3:19:11 AM PST by Just mythoughts
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To: Sandreckoner

Finally a voice of reason.


28 posted on 12/28/2006 4:50:51 AM PST by poobear (Political Left, continually accusing their foes of what THEY themselves do every day.)
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