I have been thinking about this. Maybe the "Economical Expert Gurus" out there could throw they're 2cents into this one.
The Euro has been gaining ground towards the US. Steadily climbing and reaching the 1.50 level. I was thinking on where this could end.
Lets say it goes on and on like this (theoretically).....and one day its 1 Euro towards 3 Dollars or even more....then I thought: SO WHAT? WHAT does it matter? Theoretically the EURUSD could look like todays USDJPY (1 US = 112 Units of the other currency), but Japan is still a strong Economy in comparison to the US, even if the Japanese currency is over hundred units "away" from the US currency, it doesn't make Japan one of these Third World countries where currencies are under such Inflation that you need paper bills with several zeros onto it.
The Japanese can still afford to travel to Europe, buy Mercedeses and American Goods as well. So, the US could continue with debt accumulation and just depreciate the currency, without making a dent into the Lifestyle of its citizens. Is my reasoning wrong???
SO. What do YOU think? Would it matter? My reasoning is basically, even if we've had one day a 1 Euro = 100 US, it wouldn't change that the US IS a economic, military, intelectual and cultural world power.
Am I wrong?
Thanks for your thoughts.
Peter.
The Euro has been gaining ground towards the US. Steadily climbing and reaching the 1.50 level. I was thinking on where this could end.
Lets say it goes on and on like this (theoretically).....and one day its 1 Euro towards 3 Dollars or even more....then I thought: SO WHAT? WHAT does it matter? Theoretically the EURUSD could look like todays USDJPY (1 US = 112 Units of the other currency), but Japan is still a strong Economy in comparison to the US, even if the Japanese currency is over hundred units "away" from the US currency, it doesn't make Japan one of these Third World countries where currencies are under such Inflation that you need paper bills with several zeros onto it.
The Japanese can still afford to travel to Europe, buy Mercedeses and American Goods as well. So, the US could continue with debt accumulation and just depreciate the currency, without making a dent into the Lifestyle of its citizens. Is my reasoning wrong???
SO. What do YOU think? Would it matter? My reasoning is basically, even if we've had one day a 1 Euro = 100 US, it wouldn't change that the US IS a economic, military, intelectual and cultural world power.
Am I wrong?
Thanks for your thoughts.
Peter.