People say it makes no (economic) sense at all for a Greek farmer and a German factory worker to share the same currency. It's an supposed anomaly that benefits neither the Greek nor the German. Why does it makes sense for an Alabama farmer and a New York banker to share the same currency? Only because they both feel 'American'?
This is a moot question as it is not happening in the foreseeable future. A more interesting question is whether dollar is being abandoned as a currency of choice in currency reserves as we speak. If the Chinese relax currency controls Renminbi is bound to become the dominanat currency in international trade (and consequently in currency reserves) is South-East Asia. Even Brazil vows to shift attention to Yuan. More on this... and UN wants new global currency to replace dollar
Economics is not the most important aspect of this world although some, notably economists, want to make us think so. If you let only economics drive decisions, the final step is war. The problem of the Greek farmers, and all farmers in Europe, is that they let German factory workers dictate their margin of profit. Actually, it is much harder to be a farmer than to work in a factory. Maybe you don't know but when the Germans attacked the whole of Europe and killed 20 Million people in an effort to enforce purity, you could exchange 10 pounds of potatoes for two cars or one apartment. In most countries of Europe, people were dying from hunger in the streets but farmers became rich. My grandfather was a farmer in a European country and he managed to feed his family and two other Jewish families he was hiding in his basement from blood hungry Germans. One day he was stopped on the street and put on a truck full of random people they have collected destined for execution because somewhere the local resistance has killed a German officer. He decided to risk jumping of the truck and off a cliff and he stayed 7 days unconscious on the ground before he was found. Everyone thought he was killed. The rest were put against a wall and executed without having done anything. The descendants of the executioners are today's German factory workers.
It is all about economics, which means power. Impuning German workers of today are we? Why must I always point out the error and insanity of your posts?
Economic mobility != Social mobility http://en.wikipedia.org/wiki/Social_mobility Hence abolishing USD doesn't matter.
Insane people think always that the rest of the society is insane. Also, insane people always forget the "g": impugning it is. Insanity is also manifested by forgetting the past.
It's the exact opposite. If the farmer and factory worker are engaged in trade, they *need* the same currency. Alternately, they both need freely-exchangable currencies, which will effectively turn them into proxies of each other.
They aren't going to do that until the global economy puts a gun to their head. China is terrified of having a legitimate currency - and rightly so, as it would implode their economy.
Why is it that crack pots are drawn to this forum? It seems as though 80% of the people here believe that if the Fed were abolished and we went to the gold standard, all things wrong in the world would magically become good. Better, yet, maybe we should go back to trading sea shells and spices for currency.