European Central Bank: The Euro Could Replace the U.S. Dollar

The euro could replace the United States dollar as the world reserve currency if Europe strengthens its military and economy, European Central Bank (ecb) president Christine Lagarde said in Berlin, Germany, on Monday.

The ongoing changes create the opening for a “global euro moment.” And this is a prime opportunity for Europe to take greater control of its own destiny. But let’s not fool ourselves: It is not a privilege that will be bestowed upon us because of who we are, what we stand for, and the values we uphold. It will have to be earned—together.
—Christine Lagarde

Why it matters: One of the few factors keeping America’s economy afloat is the dollar’s status as the world reserve currency. If enough countries abandon the dollar, it will financially cripple the U.S.

Some European nations are already considering separating from the dollar.

The global economy thrived on a foundation of openness and multilateralism underpinned by U.S. leadership … but today it is fracturing.
—Christine Lagarde

Details: Global investors are moving away from the dollar in response to U.S. President Donald Trump’s financial policies. The lack of an obvious alternative to the dollar means many investors are turning to gold.

Lagarde argues that if Europe becomes a more reliable partner, investors will likely see the euro as a better alternative.

• She said the euro’s rise requires growth in Europe’s military, reforms in Europe’s economy (including a more unified financing system across the Continent), liquidity agreements within the ecb, and using the euro to invoice international trade.

Lagarde said this would benefit Europe by allowing domestic players to borrow more cheaply and by protecting the Continent from sanctions and exchange rate movements.

Prophetic perspective: The Trumpet and its predecessor, the Plain Truth, have long warned of the dollar’s replacement as the world reserve currency. Bible prophecies show that the U.S. will lose its global dominance and be replaced by foreign powers. An economic crash will play a role in America’s fall and Europe’s rise.

The Bible also prophesies that several developments that Lagarde called for—including increased European militarism and unification—will come to pass.

Learn more: Read our Trends article “Why the Trumpet Watches America’s Economic Collapse.”