Speculation: Dollar vs Euro and future currencies

[Jedi Master Spock]

Steadily, the dollar has been losing ground to the euro since its inception. Recently, the number of euros in circulation globally passed the number of dollars in circulation globally, and barely a week goes by without my hearing that yet another country is starting or stepping up on exchanging dollar reserves for euro reserves.

The euro has climbed so strongly that if I'd bought euros for dollars in 2001 and sold them back for dollars today, I'd have earned a return of 60% on my investment. ($%^&... wish I'd known that in 2001.)

It looks like the euro will shoulder aside the dollar internationally within another couple decades. There's been quite a bit of speculation about what this will do to the US economy...

... but what's interesting to me is that the euro isn't a currency that any country has authority over. A group of countries have collective authority over the currency through what amounts to a process of negotiation.

Something tells me that this may be the wave of the future - not necessarily the euro itself, although that seems well placed, but currencies beyond the financial authority of a single country's banks.

Thoughts?

[Mr. Oragahn]

I can't really tell what would happen, though you give me good ideas about potential investments.

Euro-yen?

Then euro-yen-dollar?

Then an unique planetary currency?

Then a third nuclear war and everybody's back exchanging three legged goats and wingless chickens for tissue and iron.

[Jedi Master Spock]

I can't really tell what would happen, though you give me good ideas about potential investments.

Eheh. Well, I wouldn't say that the Euro is necessarily going to keep climbing against the dollar at these rates indefinitely... if it does, it's likely to be not because the euro is soaring, but because the dollar is crashing and burning.

Which some people have been speculating might happen. It's a scary world for dollars these days.

Euro-yen?

If the yen merges with anything, it'll either be the dollar, given Japan's close ties with the US. The possibility of trying to create an Asian economic zone seems like a nice idea, but I have trouble imagining China or Japan ceding economic power cooperatively to one another.

The yen's actually been losing out on the currency war in general. Yen reserves make up an ever-shrinking tiny slice of foreign currency reserves.

Then euro-yen-dollar?

Then an unique planetary currency?

Quite possible in our lifetimes, but only if we all get friendly with each other.

Then a third nuclear war and everybody's back exchanging three legged goats and wingless chickens for tissue and iron.

Oh well. It was nice while it lasted.