It has little to do with inflation, and more to do with trade flows. I’ve gotta believe that the EU ministers are sweating now, though. They may have a harder time selling things in the US.
We gotta get it from somebody since all we got to export is jobs and dollars.
Exactly. And with China pegging their currency to the Dollar - they have precious little choice considering the amount of Dollars they hold - the EU is facing incredible sales pressure from the US and China.
Figure that in the last 18 months, 60% of what the EU uses - which is the totals that come from the US and China - have increased by 30%. That is HUGE inflation in imports.
It’s only by their governments accelerating inflation and tossing billions into the kitty that they are still alive.
I think the devaluation of the Dollar - and, as a result, the Yuan - is completely purposeful and is aimed at breaking the Euro. Give it another 3-5 years at this exchange rate and it will break. Simply cannot keep up, given that EU exports are going to be way too pricey, and American and Chinese imports will finish off the last of their manufacturing AND service industries.
So countries will shed the Euro in hopes that their own currencies will stabilize a bit lower, to keep the last legs of their businesses still live so their own governments survive. It’s going to be an exodus from the Euro.