nelsonal's Journal: To get things rolling

Here's the first topic. Sorry if this one is a bit technical, I'm thinking that in the future they will be more like the Oracle Peoplesoft deal, but this has been on my mind for some time. Feel free to suggest other ideas in the comments.
I've been thinking about exchange rates a ton lately. Especially the Euro. Here's my deep, dark fear: the Euro replaces the US dollar as a primary financial value store. I don't think this will happen soon, but over the next decade or two. Here are the concerns. Huge trade deficit, with no real expectation that it will decline, medicare scaryness, and an administration (unlikely to change no matter who wins the election) that is happy with deficit spending to keep the economy growing, and increasingly investory friendly European capital markets. If I'm a rich fellow outside of both the US and Europe, I'd certainly prefer to have my investments there than here. I realize that Asian central banks have a vested interest in this game, but how long can they ignore generally much better currency adjusted returns?
If you have any thoughts (or even flames) please feel free to reply.

What are the consequences of that?

[L-Train8]

So the danger is that with the Euro as the main currency of the world, the banks financing the deficit will start charging more to do so because the dollar is a riskier investment? And that will make deficit financing more expensive and difficult?

Hopefully in 10 to 20 years when the shift to Euro-primacy is completed, the deficit will be under control. Heck, three years ago it looked like it was...

Re:What are the consequences of that?

[nelsonal]

Yes, but while deficits will probably be controlled, the debt (sum of all past deficits and surpluses) will still be quite large. It took about 40 years to build the debt, (20 of heavy debt building (1980-1995, 2000-2004) it will probably take many more than that to pay it off.