A Rising Euro Threatens American Dominance
Benn Steil, Council on Foreign Relations | April 23, 2008
The Fed is undermining global confidence by flooding the economy with new dollars while it should in fact be pursuing direct and targeted intervention. ++ Since US global purchasing power is used for humanitarian, economic or military purposes, a further fall of the dollar will damage US political influence. ++ The rise of transactions in Euros neuters US ability to control financial flows to friend and foes.
