131–140 of 286 posts
Can someone explain to me how raising interest rates combats inflation? Doesn't it do the opposite? If rates go up, financing becomes more expensive, meaning I'll need more money to do business, meaning I'll have to raise my prices to match?
I suspect it's because that's all they can really do. They are a one trick pony.
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Could you give an example of a technology that needs to be scaled up in Europe?
Competitors to Microsoft, Apple, Google, Facebook, Amazon/AWS, Netflix. The only thing we have that's even vaguely comparable that started in Europe is Spotify and it's 1/3 the size of Netflix, which itself is the smallest of the US tech giants.
EU is lucky they invested in rail lines and trains. The average person can at least attempt to stop using gas guzzlers and keep living their life. If the USD falls and oil prices rise, we in America are screwed. We almost had it handed to us this summer.
Would it really be that bad? Now I work very close to home, but when I didn't, I'd meet people commuting the other way. If it was no longer profitable to commute, we could either move to be closer to our job or switch jobs to be closer to home.
Sure, for the fools who saw a couple years of two-dollar gas and decided they needed an F-350 to drive to their office job. It's hard to work up any sympathy for them, especially when most of them lived through the gas prices of the Bush years.
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> When you buy it, the price goes up. When you can't sell it, the price stays up. How could you buy it, if it can't be sold? Also that article is from June, a lot has changed since then.
USD to RUB Average Daily Volume Traded 100 Days: 514 Average Daily Volume Traded 200 Days: 24602 You can buy it from Russia, but you can't sell it to Russia. That is how you can buy but not sell.
Just for fun, I took a look at GBP/USD and it looks like that is tanking as well. Meanwhile the ruble is stronger than it's been in 4 years. For people in the EU/UK, how has this currency slide impacted your day to day?
I don't have plans to go on holiday to the USA in the next year or so, don't plan to buy a Tesla, maybe a new Mac which is going to go up in EUR.
I worry about the long-term effects the war will have for us. Europe is resource poor and constantly rising energy prices will hit our industry hard as we cannot easily find domestic sources of energy. I do hope that switching to renewables gets accelerated and will provide us with both cheap energy and new opportunities for industry.
EU is lucky they invested in rail lines and trains. The average person can at least attempt to stop using gas guzzlers and keep living their life. If the USD falls and oil prices rise, we in America are screwed. We almost had it handed to us this summer.
If USD falls against what? Exchange is only meaningful with a counterparty.
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Its both really. In Europe you can’t do innovation, or it’s an order of magnitude more expensive.
You mean you cant do innovation without dumping the cost on society. Someone is paying for the price difference.
Your argument is just plain wrong and can be disproven with a few examples.
Can someone explain to me how raising interest rates combats inflation? Doesn't it do the opposite? If rates go up, financing becomes more expensive, meaning I'll need more money to do business, meaning I'll have to raise my prices to match?
Can someone explain to me how raising interest rates combats inflation? Doesn't it do the opposite? If rates go up, financing becomes more expensive, meaning I'll need more money to do business, meaning I'll have to raise my prices to match?
The headline is "Gas crisis sends euro back below parity against dollar." Yet the article does not explain how a "gas crisis" leads to a weaker currency. What does lead to a weaker currency? On the EU side, central bank accommodation in the face of inflation ripping higher. Germany recently logged a 37% YoY annual increase in producer prices: https://www.reuters.com/world/europe/german-economic-outlook... And the ECB…
The ECB has its hands tied behind its back, perfect storms like this highlight one of the benefits of a country having its own currency and fiscal policy - the ECB cannot move like UK/US as reconciling Greece/Italy and Germany/Northern Europe can't be done without massive pain for the south.