By around 25%-30%.
The policy I am referring to is the engineered devaluation of the dollar versus the Euro.
Consider this example. Let’s assume that the US dollar is worth 30% less against the euro than a year ago. All that means is that I have to pay $1.30 for a €1.00.
It does not mean that my money is worth 30% less across the board.
Still as part of the example, I went to buy a BMW last year, and it would have cost me $40,000. Eventually, I decided to postpone the purchase until this year.
Since the BMW was made in Europe, does that mean that I have to pay $40,000 plus another 30% because of the strong euro?
Not necessarily. The BMW manufacturer discounted its product by 30% to stay competitive in the US. Therefore, I went out and bought a BMW for $40,000. In this example, my money is not worth 20 -30% less, not even against the strong euro.
Therefore, the strong euro might eat away at foreign profit for sure, but how it affects me depends on several other factors.
Agreed. However the Euro is not the only currency our dollar has been devalued in relation to.
The point I hope people understand is that oil prices are 'higher' but a percentage of that is actually due to a devaluing process encouraged as policy by our government.
It appears that the administration undertook this course to protect the dollar as the world's de facto currency. (The OPEC states have been accepting only sales in dollars since 1971.)
Russia, Venezuela, Iran and until the war, Iraq switched over to sales in Euros. This would be disastrous to the dollar, and of course our economy. I guess pointing this out somehow makes me a troll, but I think the administration chose to devalue the dollar to head off a worse result.