Sharky:

We have agreement that the Euro will not strenthen vis a vis the US$. They will both weaken against the Chinese Yuan, Singapore $, Canadian $ and likely the Saudi Rial as well as some other currencies. Ultimately the world will go to a monetary standard of a basket of currencies of which the US$ and the Euro if they survive) will likely be two.

Why will China rise in stature to become a reserve currency? Because the growth they will generate from their stimulus plans will come from their Euro, British Pounds and US $ holdings. In other words, they are spending earned reserves (savings) which they have accumulated by selling products and services to the Western societies. While Europe and the US will be spending currency ceated out of thin air and is therefore bogus and will devalue every unit of currency of that country or monetary system has in circulation. Such is the ultimate price for profligacy.

The average lifespan for a fiat currency is 40 years. The US severed all ties to gold 38 years ago. The Euro was never on a standard other than the credibility and integrity of their paper. It is my underatanding that if the US had to monetize its currency with gold, then gold would carry a value of $10,000 per troy ounce.

How long will the people of other lands continue to accept our currencies as they are currently valued. My guess, not too much longer!

Brian