What would happen if every country in the world started trading in euros?
Monday, February 8th, 2010 at
9:09 am
kukukachooinyourface asked:
What would happen to the US dollar? Bush have to invade the whole world and force everyone to deal with US currency?
What would happen to the US dollar? Bush have to invade the whole world and force everyone to deal with US currency?
Tagged with: Bush • Currency • Whole World
Filed under: Forex
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For one thing the USD would become worthless. The private families who own the US Federal Reserve would invest elsewhere and the ‘moms and pops’ would endure a depression, hardship, famine. It would be a very difficult time, and I think it is a very likely scenario.
It would have no real impact on the US economy. The Fed would start withdrawing US dollars from circulation as soon as it recognized that the demand for money was falling.
Countries trade in their own currency with exception of oil which is priced in dollars. The major effect within the US is oil prices would become more volatile.
However several countries peg their currency to the dollar and most keep dollars in their central banks as reserves. If this would change to Euros the demand of dollars would drop. To some extent this has already happen in Europe when they created the Euro..