Skip to comments.Euro slips to new 12-year low against US dollar ($1.05)
Posted on 03/11/2015 9:09:49 PM PDT by tcrlaf
The euro slipped to a fresh 12-year low against the US dollar on Thursday as the common currency continued to buckle under pressure felt since the European Central Bank launched its massive quantitative easing scheme at the start of the week.
(Excerpt) Read more at straitstimes.com ...
Lousy time to be a U.S. company doing business in Europe.
I’m headed to Germany at the end of the month. Yeah!
Here’s why the Euro will fail. A nation’s health depends on the willingness of its people to work. For all it’s faults the USA still has the hardest working population of any industrialized nation. Europe is on the downslope with a majority population of moochers. The Euro can only be falsely propped up for so long. Unlikely that a nation populated mainly by yobs will amount to anything.
Pick me up a Wiesmann roadster while you’re there.
“For all its faults the USA still has the hardest working population of any industrialized nation.”
I agree, but the reasons Europe is in decline at this point go far beyond the willingness of the population to work hard. Political corruption, loss of a manufacturing base, overzealous immigration, the socialism you mention, and demoralization of those whose ambition would normally help drive prosperity are all major factors.
I’m very worried about where all of this is headed. I was also told recently that the rise of anti-Americanism, fueled significantly by anti-American immigrants, has had a significant impact on tourism. Europe is committing demographic suicide.
I’ll point out a couple of other facts.
When the Euro was created...the US quickly and quietly worked to under-value their currency. It only took four years to trim off twenty-percent of the value of the dollar, and create a cheaper dollar which Europeans took advantage of. By 2007, they had carved off almost forty percent of the original value/parity of the dollar to the Euro. It was plainly...Bush-policy at work, to generate more business for American industry.
Somewhere along the way, because of stability in this decade, lots of international players parked their money in Europe because of this perceived stability and strength. Even after the 2008 economic stumble...there was more faith in Europe and it’s banks....than in the US and it’s banks.
Over the past three years...things have changed. Greece is favored to leave the Euro this summer, and Italy/Spain/Ireland are regarded as problems in terms of jobs and stable economies. This Bush-plan to turn easy business to the US favor has been figured out, and countered. They want to cheapen their currency now, and create the opposite wave and get US purchases.
I’ll go ahead and make the prediction by summer of 2017 that we see the dollar buying 1.15 Euro (it was .65 just five years ago). Analysts aren’t talking of a short burst period....they are talking about a full decade where the weaker Euro policy will be driven.
I wonder how much my one pfenning coin is worth now? I kept it as a memento of West Germany.
I’d say pick me up a nice 997 turbo (2wd) but the dollar/euro exchange isn’t factored into the pricing yet..
Don’t know what it’s worth now, but it used to be worth a round of beers if you didn’t have it with you. So, if you figure based on how many I DIDN’T have to buy mine is worth, conservatively, about a zillion DM. Those were the days.
You are wrong.
China is an industrialized nation, and has surpassed America now in exports. Just last year we ran the largest trade deficit in recorded history with China.
America needs to bring back manufacturing.
What does China have to do with the Euro?
China now exports more than any other nation.
In the entire world.
China matters to the entire world. America needs to build up America once again.
OPEC Has Already Turned to the Euro
February 18, 2004
...The source for the euro exchange rate is the Federal Reserve, and I have calculated the euro's average exchange rate to the dollar for each year based on daily data.We can see from column (4) in the above table that in 2001, each barrel of imported crude oil cost $21.40 on average for that year. But by 2003 the average price of a barrel of crude oil had risen 26.0% to $26.97 per barrel. However, the important point is shown in column (6). Note that the price of crude oil in terms of euros is essentially unchanged throughout this 3-year period.
US Imports of Crude oil (1) (2) (3) (4) (5) (6) Year Quantity (thousands of barrels) Value (thousands of US dollars) Unit price (US dollars) Average daily US$ per € exchange rate Unit price (euros)
3,471,066 74,292,894 21.40 0.8952 23.91 2002 3,418,021 77,283,329 22.61 0.9454 23.92 2003 3,673,596 99,094,675 26.97 1.1321 23.82
As the dollar has fallen, the dollar price of crude oil has risen. But the euro price of crude oil remains essentially unchanged throughout this 3-year period. It does not seem logical that this result is pure coincidence. It is more likely the result of purposeful design, namely, that OPEC is mindful of the dollar's decline and increases the dollar price of its crude oil by an amount that offsets the loss in purchasing power OPEC's members would otherwise incur. In short, OPEC is protecting its purchasing power as the dollar declines.
The decline will continue for a while, probably quite a while. Even if Greece exits the Euro -- a move that's entirely political in nature -- it will still owe the money; Turkey will remain outside the EU, and with or without a cease-fire and rebuilding in Syria and Iraq will be more and more economically tied to the EU; Russia's ridiculous hegemonic pyramid alternative to the EU won't go anywhere, but Russia's economically dependent on the EU and will remain so; Israel will continue to build in the areas ethnically cleansed of Jews by the Jordanians in 1948, and have a good economy, regardless of the BDS demagogues, while simultaneously building quiet but strong cooperative relationships with Egypt, Saudi Arabia, and perhaps Jordan.
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