News: Bloomberg reports Euro as the currency of choice

According to Bloomberg: Euro Currency of Choice as Fed Easing Devalues Dollar, financial advisors are recommending investment in the Euro. They also highlight a significant change in perception on the U.S. dollar.

“This is a historic moment — the start of debasement of the world’s reserve currency,” wrote Alan Ruskin, head of international currency strategy in North America at RBS Greenwich Capital Markets Inc. in Greenwich, Connecticut. “It feels to many participants that in the grand sweep of history we are witnessing the end of ‘Rome’ on the Potomac.”

The recent American quantitative easing to generate seigniorage appears to be generating a self-reinforcing downward pressure on the confidence in the Greenback.

This may signify a change in the reserve currency that sovereigns choose to back (and peg) their own domestic currency, encourage sovereigns to seek out alternative liquid reserves (viz. commodities), and dramatically lessen the value of foreign currency reserves that are presently predominantly based on the Greenback.