Some years ago Argentina dumped it's peso and used the USD as its currency.
As history shows us the economy very quickly became mud (lets face it Argentina couldn't organize a chook raffle let alone it's economy) but that does provide an interesting aspect to the global economy and the "world's reserve currency".
Just imagine the USD being used by every country as their currency !! Of course a days labour in Australia wouldn't be worth a days labour in Ecuador but just imagine how life would work.
China wouldn't be the nuisance to America it is now....
Greece wouldn't give heartburn to the German government
the Irish debt problem would be the USs problem (which Bernanke would sort out with one of those shifty bond swaps)
the Japanese debt would be owed to the US who would sell metropolitan Tokyo to bail out California
NATO could pay off all the poppy farmers in Afghanistan who could then grow flowers that you don't inject, smoke or snort.
But of course that is an American dream that, for the foreseeable future, won't come true. However doesn't it put the euro into prospective.
Why the USD can't be the world's reserve currency is exactly the same reason why the euro can never be the ECU currency and a world currency is an impossible screaming nightmare.
A Greek is not a German; a Russian is not a Nigerian. We're all human and deliciously independent and unique.
