Why does the EU want U.S. dollars?

Marketplace Money Senior Producer Paddy Hirsch explains why Europe need dollars instead of euros as the EU tries to sort out their financial problems.

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Category:

News & Politics

Tags:

• EU
• Eurozone
• USD
• dollars
• currency
• loans
• European debt crisis
• ECB
• Whiteboard

[jonnyridge3d]

Paddy, did you go to Castle Park school in Dalkey, Ireland???

[shamrocksNY]

the united states doesnt have this problem. although individual states are in debt (california) our trading power isn't in anyones hands but ours. multiplying it by the fact if we lower our importing and produce domestic and export more to take advantage of the decrease in value of the euro we can leverage this to recover from our debt crisis, but as it is now we are crippled by oil and a few other commodities and must rely on importation unless we reform our laws to harvest oil/gas

[shamrocksNY]

the euro is only as strong as its weakest link. i.e. greece and italy. since it is a trade union the development of the euro was to lower or eliminate taxes between each country. within the euro there is the free rider problem because countries like greece are selling bonds in the denomination of the euro leaning on the good economic standing of countries like germany and england to deal with their inefficiencies making there bonds worthless lowering euro and the trading power of the trade union

[noetherianring]

awesome!

[chucky4lifekill]

@Derukugi2 Yep ur right again i know the euro sucks so by definition the dollar is better.And 80% of the europeans knew beforehand that the euro would fail.But by that same idiology if the euro gets dumped and we get the dollar the same fail will repeat it self.Money as it is today with the banks and industrial powers is a fail to begin with.Just shut down the loan system and get by with the money u have and make profit ^^.By giving out loans u FAIL at making money a good thing for human society

[Derukugi2]

@chucky4lifekill

Yes, the US has a huge debt problem, but there there is a fundamental difference: The US has political unity and its own currency. The Dollar does not have the fundamental problems that the Euro has.

In effect, the Euro is a kind of gold standard, with none of the advantages of the gold standard but with all its disadvantages.

The US problems can be solved. The Euro problems can only get worse, as long as the Euro exists.

[chucky4lifekill]

@Derukugi2 LoL tell me something i dont know i have been against the euro frome the start.But like usual the politicians dont listen :P.Saying the dollar is better is just the same crap that people say about the euro.And the dept the europeans have is put all together the same/ less the what amerika has on its own. Yes we dutchies are helping with the 2 trillion plan but Amerika has his own dept thats over 11 trilion. So wich one is better i think GOLD is better it has its value and cant be made

[BullToTheShit]

Does this video explain (to some extent) why the U.S. isn't experiencing hyperinflation from the FED creating trillions of dollars out of thin air in the last 3 years?

In other words, so many dollars are sought-after, held, and spent by foreign entities (both government and individuals) within their own boarders and not being spent back in America where they would feed the inflation.

[pirucreek]

please do a video asap on rehypothecation and hyper-repothecation

[chrissis111]

Hey, where is this week's video? It's Sunday night already.