The Euro is the common currency of most of the European countries. Similar to the Euro, some have suggested that North America should have its own common currency and get rid of the individual currencies. So instead of the Canadian dollar, the US dollar and the Mexican Peso a common yet-to-named currency can become the official currency of three countries. Obviously this idea has not become a reality until now due to vast differences including cultural, political and economic differences between these countries.
I came across a radical proposal put forward by Bill Bonner, Best-selling investment author in AustraliaÂ and owner of both Fleet Street Publications and MoneyWeek magazine (UK).
From the article:
Switch to the euro! The US should abandon the dollar and take up the euro as its currency.
Sounds crazy? Un-American? But think of the advantages.
First, the euro is more colorful. It’s more fun to look at and use.
Second, the euro is worth more than the dollar; you don’t have to carry around so much currency.
Third, when you travel to Europe, you won’t have to convert your money.
Fourth, Europe is the world’s largest economic unit. Having a currency in common with it will make it easier for the US to trade.
Fifth, the Fed doesn’t control the value of the euro. Instead, it is controlled by European bankers who, generally, are made of sterner stuff than Bernanke et al.
Sixth, European bankers will not readily print euros just to help the US continue its program of reckless spending.
Seventh, unable to fiddle its own currency, and inflate away its debts, the US will have to cut spending.
Eighth, the whiners, chiselers and something-for-nothing crowd in the US can moan all they want; Jean Claude Trichet won’t give a damn.
Source: Via MoneyWeek