Amero: North America's answer to the Euro?

[Greek soldier]

I never heard of such a thing before, but while searching throught the Net I found this peculiar and hypothetical "amero" which seems to be materialized within 20 years or so.


Currency union in the Americas is an idea based on the common European Union (http://en.wikipedia.org/wiki/European_Union) currency (http://en.wikipedia.org/wiki/Currency), the euro (http://en.wikipedia.org/wiki/Euro). The hypothetical American (http://en.wikipedia.org/wiki/The_Americas) currency is sometimes referred to as the amero. The proposal is supported by some economists (http://en.wikipedia.org/wiki/Economist), but is not likely to be enacted in the near future.

As well as calls for a currency for the Americas (http://en.wikipedia.org/wiki/The_Americas) as a whole, in Canada (http://en.wikipedia.org/wiki/Canada) discussions of a more limited crossborder currency union (http://en.wikipedia.org/wiki/Currency_union) are common. The C.D. Howe Institute (http://en.wikipedia.org/wiki/C.D._Howe_Institute), one of Canada (http://en.wikipedia.org/wiki/Canada)'s leading economic think tanks, advocates the creation of a shared currency between Canada and the United States (http://en.wikipedia.org/wiki/United_States). The Fraser Institute (http://en.wikipedia.org/wiki/Fraser_Institute), a leading conservative (http://en.wikipedia.org/wiki/Conservative) think tank (http://en.wikipedia.org/wiki/Think_tank), has also argued in favour of the amero. Herbert G. Grubel (http://en.wikipedia.org/wiki/Herbert_G._Grubel), a senior fellow of the Fraser Institute, came out with a book title The Case for the Amero in September 1999. Conversely, groups such as the Council of Canadians (http://en.wikipedia.org/wiki/Council_of_Canadians) strongly oppose any move towards currency union as being extremely harmful for the Canadian economy and Canadian sovereignty (http://en.wikipedia.org/wiki/Sovereignty).

There are many lower levels of currency cooperation that have occurred in the Americas. A number of states – such as Argentina (http://en.wikipedia.org/wiki/Argentina) and Canada (http://en.wikipedia.org/wiki/Canada) – have at times tied their currency to the United States dollar (http://en.wikipedia.org/wiki/United_States_dollar), and in 2000 (http://en.wikipedia.org/wiki/2000) Ecuador (http://en.wikipedia.org/wiki/Ecuador) adopted the US dollar as its sole currency. In much of Central America (http://en.wikipedia.org/wiki/Central_America) and the Caribbean (http://en.wikipedia.org/wiki/Caribbean) the US dollar (http://en.wikipedia.org/wiki/US_dollar) is already a de facto secondary currency, and it serves as parallel legal tender in both Panama (http://en.wikipedia.org/wiki/Panama) (since independence in 1903 (http://en.wikipedia.org/wiki/1903)) and El Salvador (http://en.wikipedia.org/wiki/El_Salvador) (since 2001). Some pundits thus argue that currency union is all but inevitable, whether it is desired or not.

A major obstacle to the creation of a unified currency is the sheer dominance of the United States in any such union. Unlike any state in Europe, the USA has a larger economy than all the other American nations combined, and monetary policy would thus inevitably be heavily tilted in favour of the United States. [citation needed (http://en.wikipedia.org/wiki/Wikipedia:Citing_sources)] Another obstacle for the creation of an American Monetary Union (http://en.wikipedia.org/w/index.php?title=American_Monetary_Union&action=edit) would be getting the Central and South American nations to join. South America (http://en.wikipedia.org/wiki/South_America) continues to shift towards the left while the US is shifting towards the right. The major differences between the ideologies of the countries of the Americas would make it nearly impossible for anything productive to occur.

http://en.wikipedia.org/wiki/Amero


Should we expect a kind of a political Union between the US, Canada and Mexico?

[ElHombre]

WTH!?! 'amero'? this is the first time i've heard of anything like it. what's the source?

[askDNA]

please...no

[Greek soldier]

WTH!?! 'amero'? this is the first time i've heard of anything like it. what's the source?

Sorry, I forgot post the link.:cantbeli:

But you can also find info here.

http://www.amerocurrency.com/

[XxDualityxX]

**** I am not going to canada I dont give a **** about canada therefore I dont want to shar their curency. No offense to canda but its about the last place on my vacation list.

[tsuri]

Amero
Ugh! Euro was a compromise(Franken would have sounded a lot better, screw you brits!). Amero just sounds plain stupid.

I don´t see that happening for the following reasons:

The Dollar is the International Currency, changing it into the Amero, can lead to unforeseen problems

The Euro was introduced to ease trade in Europe, with(at the time) 15 currencies and exchange rates(a situation you do not have in America), it´s precedessor, the ECU was created to keep them all more or less consistent, which led to the creation of a european central bank.

If the Americans do it, it will mean that the US have to give up their influence on the Dollar. Which is not going to happen.


You can already get very far with the US Dollar in America (North and South). There is no need for a Euro.

[Haiw]

**** I am not going to canada I dont give a **** about canada therefore I dont want to shar their curency. No offense to canda but its about the last place on my vacation list.
Thanks for your input, but I don't think the opinion of braindead bigots is of much concern to the economists and politicians who'd make the decision for this currency. Feel free to move to another country tho when it happens, preferably one without internet acces.

[Greek soldier]

To tsuri:

That's why I said "which seems to be materialized within 20 years or so.".

It's rather a political issue than an economic one. But there woud be practical problems too. The FOREX basket will decrease to just 3-4 currencies if such thing happens (Euro, Amero, Yen, Suisse Frank).

[tsuri]

That's why I said "which seems to be materialized within 20 years or so.".

We took 30-40 years while we wanted and needed it and we don´t have certain states on board yet that do not want to surrender control to their currency.

The US are too nationalistic to adopt this and nobody really needs it. Aside from "hey the Europeans can do it, so we have to do it too"

[Greek soldier]

THE NEW WORLD DISORDER

U.S.-Mexico merger opposition intensifies

Some see secret efforts to scrap dollar, end U.S. sovereignty, combine nations

By Joseph Farah
© 2006 WorldNetDaily.com


WASHINGTON – Are secret meetings being held between the corporate and political elites of the U.S., Mexico and Canada to push North America into a European Union-style merger?


Is President Bush's reluctance to control the border and enforce laws requiring deportation of foreigners who enter the country illegally part of a master plan to all but eliminate borders between the U.S., Canada and Mexico?

Does the agenda of the Security and Prosperity Partnership of North America include a common currency that would scrap the dollar in favor of what some are calling the "amero"?


It may be the biggest story of the 21st century, but few press outlets are telling it. In fact, until very recently, few in the U.S. were aware of the plans and even fewer denouncing what appears to be the implementation of an effort some have characterized as "NAFTA on steroids."

But opposition is mounting.

http://www.worldnetdaily.com/news/article.asp?ARTICLE_ID=50981

[ElHombre]

that last source is worldnetdaily, a group even more cavalier with reality than fox news.

[GAFES]

its probably a conspiracy to destroy the USLoL

[evanfitz]

New to me, it would be interesting but I doubt it would work.

[c62]

We took 30-40 years while we wanted and needed it and we don´t have certain states on board yet that do not want to surrender control to their currency.

The US are too nationalistic to adopt this and nobody really needs it. Aside from "hey the Europeans can do it, so we have to do it too" Both your post were dead on tsuri. I doubt we(the US) would ever go to a Amero. There are several problems with this, some of them you mentioned above.

What would oil be traded in? Currently it is the Dollar, which gives the US gov't tremendous leverage, the ability to borrow at will, and helps drive the global economy. If we switch to the Amero, we would lose that leverage, I don't know if we would be able to keep borrowing the way our gov't has been. Our ability to drive the global economy would be severely weakened as we would have to deal with Canada & Mexico(and that's not a good option).

Also Mexico has had problems with their peso fluctuating wildly in the past(not so much recently). If the Amero is going to be the international standard, or whatever it's called, then it would have to be more stable. Mexico is definately the weak link with that respect.

[Daniel1115]

Someone I know anticipates that the NAU - if created - will eventually combine with the EU to produce the "New World Order." He thinks that the Security and Prosperity Partnership of North America is the roadmap.

He sent me this clip which aired on CNN's Lou Dobb's show July 3rd:
http://www.shoutwire.com/viewstory/18417/The_North_American_Union_A_traitorous_act_on_behalf_of_George_Bush

[Greek soldier]

Both your post were dead on tsuri. I doubt we(the US) would ever go to a Amero. There are several problems with this, some of them you mentioned above.

What would oil be traded in? Currently it is the Dollar, which gives the US gov't tremendous leverage, the ability to borrow at will, and helps drive the global economy. If we switch to the Amero, we would lose that leverage, I don't know if we would be able to keep borrowing the way our gov't has been. Our ability to drive the global economy would be severely weakened as we would have to deal with Canada & Mexico(and that's not a good option).

Also Mexico has had problems with their peso fluctuating wildly in the past(not so much recently). If the Amero is going to be the international standard, or whatever it's called, then it would have to be more stable. Mexico is definately the weak link with that respect.

1) Euro. That's the reason the US invaded Iraq. They didn't want Saddam switch from the US$ to the €uro. Iran is thinking about it too. Infidels!p-)

2) For sure the US would stop borrowing like LSD addicts, or keep printing money to refinance their debt and deficits, if it follows the concept of the ECB.

3) Currently China and India drive global economy.

4) Mexico and Canada would definately join since

a. They will have the same currency, thus lower FOREX Market volatility .
b. Increased Purchasing Power Parity.
c. Amero, if it follows the same concept with the Euro, will help Mexico keep inflation in some descent levels.

Problem? I doubt the US will leave for now their own currency. And plus, they will have to bring back the M3 mechanism.p-)

[tsuri]

3) Currently China and India drive global economy.

The Triad wants a word with you ;) (US, Japan and German do about 50% of the world GNI)


c. Amero, if it follows the same concept with the Euro, will help Mexico keep inflation in some descent levels.

Not without a structure policy in NAFTA. Mexico´s economy is crap and the Amero alone can´t fix that.

[tuercas]

a EURO type currency for US, Canada , and Mex would rox . would make the trade more equitable, which nafta was not able to do, and we wont have to worry about fluctuating currency anymore.

this has been going on for some time in an informal fashion. most large purchases be it cars or houses and most loans are made in dollars not pesos.

[Gothjod]

Im not surrendering my Dollars anytime soon... dont count me in.

[jetsetter]

Canada and Mexico would most likely just use the Dollar.

[Lt-Col A. Tack]

a EURO type currency for US, Canada , and Mex would rox . would make the trade more equitable, which nafta was not able to do, and we wont have to worry about fluctuating currency anymore. Wouldn't problems with a fluctuating currency be solved by pegging a troubled currency unit to the dollar? Seems I've heard that at one time, many nations had their currency pegged to the US dollar.

China for a long time (too long!) had their currency (the yuan) linked to the dollar. Now I think they have the value of the yuan linked to a "basket" of currencies. http://www.chinadaily.com.cn/english/doc/2005-08/11/content_467988.htm

[c62]

1) Euro. That's the reason the US invaded Iraq. They didn't want Saddam switch from the US$ to the €uro. Iran is thinking about it too. Infidels!p-)
Here we go again with the Bush is Evil and He is Going to RULE THE WORLD [insert Dr.Evel laugh]. Seriously, as long as the Saudis trade in dollars, all oil will be traded in dollars.


2) For sure the US would stop borrowing like LSD addicts, or keep printing money to refinance their debt and deficits, if it follows the concept of the ECB.
Our borrowing has kept the global economy afloat at times, the the problem is it got out of hand.


3) Currently China and India drive global economy.
That's comedy. They don't and won't have a shot anytime soon. USA & Japan are the two biggest economies by far. And even (if)when they do get big enough to have a say, they'll have to share with the two mentioned.

[foxtrot023]

Canada and Mexico would most likely just use the Dollar.

Indeed. There is already a de facto currency in the Americas and is called the USD. Situation is waaaaaaay different from Europe. IF any currency is to be adopted it will be the USD, not a new currency type, certainly not the ¨amero¨.