Wednesday, January 7, 2015

7/1/2015: Another One for European Century


A chart via @Schuldensuehner this one pointing at another myth of the European Century blowing up: the myth of Euro becoming the global reserve currency.


That's right, Official Reserves held by the Central Banks in euros are down 8.1% in Q3 2014.

This, as Bloomberg notes, is a much faster rate of decline in reserves than during 2010-2011 crisis. "In the third quarter of 2011, the common currency slid 7.7 percent, while its reserves fell 2.8 percent. A deeper plunge of 9.4 percent in the euro in the second quarter of 2010 only prompted a 1.3 percent loss in holdings, the IMF data showed."

Remember, this was supposed to be a European Century (http://www.dw.de/barroso-europe-is-a-success-of-globalization/a-2414542 and http://arc.eppgroup.eu/Activities/docs/berlin_declaration/en.pdf).

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