Such a shift from the U$ to the Euro would have a profound impact on the US economy and on foreign affairs. Simply put the US would be far weaker, even militarily, if this were to occur. It would also occasion governments in the US to deal with out of control spending by either raising taxes; cutting spending; or borrowing at above market average rates. None of these would be beneficial to the US economy.

There is of course the matter of prestige and power. A weak currency reflects intellectually and superficially, a weak country. The richest empires in history have proven that a robust and reliable currency unit is mandatory in running, and managing a far-flung empire. The Roman denarii, the British pound, even the Franc and Ruble, all have demonstrated the benefits of imperial monetary domination.

Maintaining a strong currency and reassuring the empire's citizens of its reliability, is a must for the imperial power. Allies and satrapies don't take kindly to devaluating assets or using a weak imperial currency. In times past debased currencies and economic chaos has led to many a war and rebellion against a weak imperial power.

The dollar's decline is a symptom of imperial weakness. A dollar decline might benefit multi-national firms and exports; and decrease temporarily the trade deficit, but those benefits come at a huge cost. Inflation, rising oil and gold prices which are denominated in the U$, and most vitally, a decrease in hegemonic power, are the results of bad fiscal and monetary policy.

The U$ dollar's 30 year decline once again proves the folly of governmental and political posturing. Once the US dollar loses its status as the world's reserve currency, it will soon relinquish its imperial dominance. This is not a positive for anyone inside the US imperial system. Empires bring peace, prosperity and wealth creation. International economic chaos does not.

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