Sunday, October 18, 2009

Will the EU force Britain to accept the Euro?

Is an attempt being made to split the Anglo-American Alliance, by collapsing the dollar? Connect the dots. From two separate articles:

France Condemns Czech President Over EU Treaty
PARIS (Reuters) - French President Nicolas Sarkozy criticised Czech President Vaclav Klaus on Thursday for failing to sign the European Union's Lisbon Treaty and said there would be repercussions unless he fell into line quickly.

In an interview with Le Figaro newspaper, Sarkozy also said the fact that Britain had not adopted the euro single currency would make it difficult for former Prime Minister Tony Blair to become president of the 27-nation bloc.


Some European leaders, including Sarkozy himself, have suggested Blair would be a strong candidate, but a number of smaller countries have come out against the British politician and the French president sounded doubtful about his chances.

"The fact that Great Britain is not in the euro remains a problem," Sarkozy said.

As the US dollar continues to weaken, euro and the yen have surpassed the dollar as the favored currency by central banks:

The demise of the dollar
[...] Ever since the Bretton Woods agreements – the accords after the Second World War which bequeathed the architecture for the modern international financial system – America's trading partners have been left to cope with the impact of Washington's control and, in more recent years, the hegemony of the dollar as the dominant global reserve currency.

The Chinese believe, for example, that the Americans persuaded Britain to stay out of the euro in order to prevent an earlier move away from the dollar. But Chinese banking sources say their discussions have gone too far to be blocked now. "The Russians will eventually bring in the rouble to the basket of currencies," a prominent Hong Kong broker told The Independent. "The Brits are stuck in the middle and will come into the euro. They have no choice because they won't be able to use the US dollar."

Chinese financial sources believe President Barack Obama is too busy fixing the US economy to concentrate on the extraordinary implications of the transition from the dollar in nine years' time. The current deadline for the currency transition is 2018.

The US discussed the trend briefly at the G20 summit in Pittsburgh; the Chinese Central Bank governor and other officials have been worrying aloud about the dollar for years. Their problem is that much of their national wealth is tied up in dollar assets.

"These plans will change the face of international financial transactions," one Chinese banker said. "America and Britain must be very worried. You will know how worried by the thunder of denials this news will generate."

Iran announced late last month that its foreign currency reserves would henceforth be held in euros rather than dollars. Bankers remember, of course, what happened to the last Middle East oil producer to sell its oil in euros rather than dollars. A few months after Saddam Hussein trumpeted his decision, the Americans and British invaded Iraq.

Well I really doubt there will be an invasion this time. Europe wanted a weaker America, so they can advance their own plans. It looks like they are getting what they wanted. But how far will it go, and at what cost to us? Hastening the collapse of the dollar, to force Britain to accept the Euro as their currency?

Note I said "hastening", not causing. The causes for the weakening dollar have more to do with the actions of our own government, than anyone else. How long before it's too late to turn that around? Or is it already too late?


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