Dan,
the problem with the Yuan is not very different to the misery we have today with the HK$: they are both (more or less) pegged to the U$.So what difference would it make if the Yuan will gain in influence/ replace the HK$ ? ( hope I understood you correctly here)
NC wrote : " The US is the only country that would like to see a weaker USD!"
That is not correct in my opinion : The Chinese are quite happy with it, since it keeps the prices of their exports to Europe low ( Which is vice versa the reason Europeans worry about it).
404: If we discuss the value and the future development of the EURO, we have to look at all the countries who are using this currency. While it is correct that the U.S. are bigger than any European country, and technically the EU is only a superficial product ( as many countries), the Euro nevertheless is supported by a bigger economy with higher growth rates than the U.S. Your statement " the EU isn't one big economy " is highly debatable in my view in the first place, but in any case irrelevant in my opinion if discussing the currency supported by most countries of the EU. In other words : the U.S. economy would be according to your perspective just the combined force of California, Texas, Ohio, etc..
You said : " The Chinese and the EU don't even come close ( to the U.S. economy)" The Chinese GDP is already 10,17 trillion at the moment, compared to 13,13 trillion ( 2006 est) of the U.S. , growth rate of China are about fivefold compared to the U.S. at the moment ( 10 % versus 2% ).
So your predicted " 50 years" look more like 5 years actually.
best regards
Last edited by sisyphos; 6th Nov 2007 at 15:56.