Von Neumann machines. The key to space and much else. 2441

The term seniority when referring to a currency refers to the primary currency for other countries to have their holdings in.

Such currencies is a relatively novel invention. Until the 7-years war in the mid 1700s metals and other natural objects like land ruled surpreme as reserve currencies. The dutch had done some pioneering work that was severely set back with the bankrupcy of the VOC a few decades later.

Real reserve holdings took a revolution or two, and it was during the reign of Queen Victoria that the UK established the Pound as the reserve currency of choice. By 1905 over 4-5ths of all reserve holdings backing other currencies were in pounds, and the ones that weren't had political reasons for it.

Like Germany. World war one severely weakened the holdings, but the US dollar and other contenders only made small inroads into soverenty. WW2 made the final blow. By 1943 the UK state was for all reserve purposes bankrupt; and the soverenty status fell in the hands of the americans. It was settled in Bretton Woods in late 1944.

Since then almost all reserve holdings have been in dollars, until a few years ago. The Euro has made some inroads; 15% or so. It remains to be seen if this is just a hedging; a dual-sovereign period (the first in history) .

Being the nation holding the senior currency is a good thing to be. It involves the rest of the world giving you an interest free loan in perpetuity. It can be argued that the reason the UK avoided a severe backlash after WW1 was the seniority effect on the pound.

There has also been a niche player here; Switzerland. For those who do not want to be exposed to UK,US or EU courts. It is extimated that this effect is worth around the same for the swiss economy as the petroleum sector is for Norway's.

But, back to Britain. If it is any consolation; the sun STILL does not settle on all British posessions at any one time. Old Blighty, Pitcairn and Diego Garcia is actually sufficient to achieve that.

-- mrr