"A more serious consequence of the dollar's fall is that the euro has become more rewarding for foreign investors, and they are reacting accordingly. In 2001, Middle Eastern oil-producing countries kept 75 percent of their currency reserves in dollars; now the figure is 61 percent, with much of the rest in euros. Chinese and Russian central bankers are also shifting reserves. This trend, at some point, could set off a spiral: the dollar declines, causing further sell-offs, leading to a further decline, and so on."
"The economic trends are worrisome because they stem not just from market forces but also from politics. As T. R. Reid notes in his new book "The United States of Europe," the euro "was specifically designed to challenge the global hegemony of the dollar."
Yes, it was. Europa Uber Alles.