Posted on 08/23/2022 1:53:33 PM PDT by SeekAndFind
NEW YORK — The euro has fallen below parity with the dollar, diving to its lowest level in 20 years and ending a one-to-one exchange rate with the U.S. currency.
It's a psychological barrier in the markets. But psychology is important, and the euro's slide underlines the foreboding in the 19 European countries using the currency as they struggle with an energy crisis caused by Russia's war in Ukraine.
Here's why the euro's slide is happening and what impact it could have:
WHAT DOES EURO AND DOLLAR PARITY MEAN?
It means the European and American currencies are worth the same amount. While constantly changing, the euro has dropped just below a value of $1 this week.
A currency's exchange rate can be a verdict on economic prospects, and Europe's have been fading. Expectations that the economy would see a rebound after turning the corner from the COVID-19 pandemic have been replaced by recession predictions.
More than anything, high energy prices and record inflation are to blame. Europe is far more dependent on Russian oil and natural gas than the U.S. to keep industry humming and generate electricity. Fears that the war in Ukraine will lead to a loss of Russian oil on global markets have pushed oil prices higher. And Russia has been cutting back natural gas supplies to the European Union, which EU leaders described as retaliation for sanctions and weapons deliveries to Ukraine.
Energy prices have driven euro-area inflation to a record 8.9% in July, making everything from groceries to utility bills more expensive. They also have raised fears about governments needing to ration natural gas to industries like steel, glassmaking and agriculture if Russia further reduces or shuts off the gas taps completely.
(Excerpt) Read more at khou.com ...
Financial institutions worldwide know the RMB is a complete sham, based on a system that is so corrupt ours looks angelic by comparison. Ditto for Russia, except Russia’s economy is smaller than that of Texas. India? Brazil? South Africa?
Yes, the Saudis will accept payments for their oil in RMB or Rupees. BFD.
BRICS would need to defeat the West in WWIII for their basket of currencies to become the global reserve, as well as have the rest of the world accept their software and systems. Ain’t happening anytime soon, no matter how many times someone tells you otherwise on their YouTube channel.
When I was trading commodities when the question: ‘Where is the support point?’ was asked the answer was (an IS) always:
“There is support at zero.”
Yes, and the world is flat, BidenIdiot is a spry 80 year old who garnered 81 million alleged votes, and Ukraine is winning the war/conflict with Russia.
I could go on.
Your stubborn belief is your own, as is the continued delusion that the US dollar will continue on forever as the world’s reserve currency...despite what history indicates.
A duality is being created, is emerging, and will exist as faith in the US dollar and the US hegemony becomes more and more eroded and disputed, throughout the world.
Cranked, you poor folks really have a hard time with
reality today.
Keep believing in all that nonsense if it makes you feel
good. I can’t stop you.
Your reaction on a number of issues is to fall back on
the idea that anyone who disagrees with you has to
support Biden/Soros et al. You have over 24 years of my
comments on Conservatism and Soros in particular, but you
fall back on the idea I support Communists and Soros
anyway.
Yes, you could go on, and I suspect you will.
I didn’t say the dollar would go on as the world’s
currency forever. In one of my first posts, I may have
touched on the belief it could be coming to an end in
the not too distant future. I don’t remember now if
I just thought that or expressed it.
It’s not the idea that you think a new currency will
replace the dollar. It’s the almost gleeful way you
do it that stands out to me.
If the U. S. fails, you guys are going to get a real
look at the global abyss you think the U. S. has
caused, and too late you’ll find out it wasn’t the
U. S. at all that caused it.
The USSR/Russia and China have been hard at work trying
to destabilize the world. They have aided Iran, North
Korea and other nations to facilitate that.
The Communists in our own nation are hard at work
doing much the same things. None the less, you call
me the problem, and not the true fellow travelers of
the Russia/Chinese cabal the enemy.
Who has been helping Iran get the bomb? Conservatives?
Biden and Russia... Soros’ big buddies Biden/Obama have.
So while the U. S. does provide munitions to the Ukraine
to push back on Russia, it hasn’t tired of trying to get
Russia’s ally Iran the bomb.
You need to get off this kick that Russia is the current
shining light to the world. It isn’t. Iran and North
Korea are its allies. They sure as hell aren’t mine or
yours.
It means houses in France are cheaper.
Good time to buy some nice Italian shoes.
It might be the time for the Mrs. and me to make our Portugal trip.
Cheaper to buy 25 or more year old vehicles such as Unimogs to import.
All fiat currency sucks but the USD sucks the least.
I think it’s going to take a multi pronged approach, and I’m
sure you agree.
Some tariffs would be okay.
I also think it’s time to face Welfare as we know it.
Anywhere from $1 to $1.5 trillion is burnt off each year,
paying for people to sit around and think up new complaints.
Means test it, and cut off 85.00% of the people on it.
$40 billion for the Ukraine, with more billions announced
every other day? No!
Some aide may have been advisable, but this is shear
stupidity to the X.
We could have built 2 walls for that amount.
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