China calls for a new reserve currency

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well they can look for a new currency all they want, but i doubt they'll be buying up euros. our economies are to intergrated for them to act like b*****s and they know it. if we go down who do you think will buy all there nasty ass low cost consumer goods? oh please son outta my face with it

There is a constitutional difference in the set-up of the European Central Bank (ECB) and FED: The FED is govern by the Federal Reserve Act. There the US-$ is under total control of the US-lawmaker if the lawmaker wants to execute his power.

The ECB is govern by statute in the form of an international treaty between the member states of the EU. So you need the agreement of all 27 lawmakers of the EU to amend it - in practical terms impossible.

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There is an other difference: The FED-act defines in Sec 2a the task of FED:



Art. 2 of the Statute of the ECB defines:



This is very important twist: The stability of the currency for the ECB the primary goal, all other task are only relevant if this goal is fulfilled. For the FED it is only one goal besides others.

According to this construction: Even if the European economy would go down the drain, the ECB still will keep the Euro stable. The FED may would let go the dollar down the drain, to rescue the economy or the government. This is forbidden for the ECB.

but just wait until people find out paper money isnt worth the whatever its printed on, this means that no country has ever suceeded using paper currency. what makes us think we are so different? didnt rome use paper monies? i cant remember

Good lord! How old are you?

That is just not true: England (and later the UK) worked very well with paper money since the late 17th century, the Amsterdamsche Wisselbank worked very successful from 1609 till the 1820, when the De Nederlandse Bank took over the issuing of banknotes for the Netherlands - a task the De Nederlandse Bank fulfilled till the introduction of the Euro.

You find historically much more trouble with gold and silver currencies. The history of the Pound Sterling during the War of Roses and the reign of Henry VII, the troublesome story of the Taler-Currencies in 17th century, the measurements of Elizabeth I to link certain payments to price of grain are fine examples.

oh well that is very intresting. i thought all countrys that used paper monies eventually failed

Gold or silver coins, or banknotes, failed if politicians (or monarchs) were given too much control on currency issues.

It was always the case when currencies failed: And there is in this respect not a big difference between the devaluation of the Pound Sterling under Henry VIII or the printing press of later generations. If banknotes are issued responsible, they are as stable as good maintained gold or silver currency, but with a higher flexibility in respect of acute needs.