Hah, honestly, I'm not speaking to this with any real knowledge of what will happen, but if it will drive up the value of the dollar without strengthening China's position over us, i'm all for Euro hitting the shit. I'm trying to go to Europe this summer anyway.
Well it won't really prop up the dollar. Here's the problem...the Federal Reserve. basically and this is the very simple explanation. Every time you print more money.
To keep numbers small say there is 100 dollars int he world, that's in those are REALLY valuable dollars, you add another 100 to get 200. Now those dollars arent as valuable.
Fiat currency (money not backed by a commodity) just sucks. It is bad it just means you can print money. When we were on the gold standard, a dollar was worth a set amount of gold. To print more money you had to either increase the gold reserves or say that dollar is less worth gold therefore lowering the value.
It goes back to the law of supply and demand. If supply is higher than demand price goes down, if demand is higher than supply price goes up. Same kinda thing with currency.
