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Euro falls below parity with the dollar

reuters.com

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Re: Euro falls below parity with the dollar

#261

Post by [deleted] »

JumpCrisscross wrote: post #51
adammarples wrote: post #47

Earlier quoted context omitted.

The rouble is strong because the Russian state is burning through its foreign reserves to backstop it.

> the Russian state is burning through its foreign reserves to backstop it Half of Russia’s reserves are sanctioned. They’re earning bumper returns on their energy exports, mainly oil, despite the ~20% discount they’re forced to offer. And they’ve been seizing exporters’ hard currency. They say they’re down 10% (20% sanctions adjusted) from February [1]. That’s a decrease, but it’s not burning. (Obvious disclaimer: t…

[deleted]

Re: Euro falls below parity with the dollar

#262

Post by WastingMyTime89 »

makomk wrote: post #230
WastingMyTime89 wrote: post #226

Earlier quoted context omitted.

> While the military help that the EU is giving Ukraine is great It seems adequate. Europe is helping Ukraine and putting pressure for a quick end to the conflict. The real question is why is the US helping so much to the point Ukraine is refusing to negotiate. Part of me thinks it’s actually advantageous to them to weaken both Russia and the EU.

The US, through NATO, is committed to defending much of Europe and the EU against Russian invasion if they decide to try anything. This war was an opportunity to demonstrate that the price will be too high to for Russia to pay and that they will not be allowed to get away with annexing other European countries, while destroying a large chunk of their military capacity in the process, all without having to actually co…

For sure it’s directly in the interest of the USA in the same way NATO actually keeps Europe subservient and prevent the EU from actually being a power. It’s just the usual raw deal for European countries which are going to have to deal with huge damage to their economies. But we have only ourselves to blame. We should have sent the US packing a long time ago.

Re: Euro falls below parity with the dollar

#263

Post by lostmsu »

Ancalagon wrote: post #217
thiago_fm wrote: post #45

This is great for German exports. Expect to see more Mercedes Benz in the streets of America. It generates some inflation as imports are pegged to the dollar(somebody mentioned that it is hedged, it is just by some extent), but overall is actually good for the economic block. The EU needs to export to survive. The EU has been fighting a possible deflation for most of the 2010s, this is actually not so negative as peo…

Not to mention US tourism to Europe will increase I bet.

IMHO, it will still be a while until it grows back to pre-COVID levels.

Re: Euro falls below parity with the dollar

#264

Post by lostmsu »

nopehnnope wrote: post #240
vondur wrote: post #237

Honestly, There probably needs to be a Federal type government for Europe, much as the US is setup. The EU kind of reminds me of the US when the US was run under the Articles of Confederation before the current Federal system was adopted. It was very messy.

Some problems with that: * The US had a single national language (despite regional linguistic minorities). In the EU, the closest would be English, which is the universal second language but very few people’s first language. * Relatedly, the US in 1789 was very culturally homogenous by modern standards. Europe is not. * The wealth disparity between countries inside the EU is absolutely massive. Federation would lead…

I think the only real problem in this list is convincing countries to adopt English (people tend to be self-important).

Culturally, EU is quite homogenous. There may be 1-2 small countries with moderately different approach, but if you compare to the rest of the world, it is basically the same.

The wealth disparity in the US does not cause what you describe, so why would it happen in EU?

Re: Euro falls below parity with the dollar

#265

Post by lostmsu »

mytailorisrich wrote: post #197
lm28469 wrote: post #194

Earlier quoted context omitted.

> mostly wheat at this point Wheat and a few million people who had to leave their country, but yeah, wheat... It obviously is a major crisis in Europe and has many ramifications, if all your neighbours mysteriously die in the same week it won't affect you personally but you surely will feel down or threatened. If it was just about wheat nobody would care, Ukrainian wheat isn't even exported to EU countries

Two things on this: People left early in the war because of panic and because Russia was trying to invade the while of Ukraine. But if we look at the situation now, arguably there is no reason to have refugees outside of Ukraine. Second thing is that, in any case, the Ukrainian refugees are not disruptive at continent level, though they might be in specific areas near Ukraine. Of course a war, any war, is disruptive…

> People left early in the war because of panic and because Russia was trying to invade the while of Ukraine. But if we look at the situation now, arguably there is no reason to have refugees outside of Ukraine.

Huh? Until Feb you might have said this if you did not believe the intelligence reports on an invasion being prepared, but now when they are actually deeper in Ukranian soil, and scratched near Kiev itself, are you to say they won't try again?

Re: Euro falls below parity with the dollar

#266

Post by cplanas »

fzfaa wrote: post #116
jacquesm wrote: post #109

Earlier quoted context omitted.

They're not wasting money. They simply don't have the massive wealth of the North to jump off from or to cushion blows. On top of that a large quantity of what they do earn is spent on interest payments to the North.

I am from the south. We are wasting money and producing too little. We don't have the massive wealth of the north because we are culturally incapable of behaving some other way.

It must be terrible to live with this level of self-hatred.

Re: Euro falls below parity with the dollar

#267

Post by bwi4 »

ithkuil wrote: post #255
bwi4 wrote: post #245

Earlier quoted context omitted.

If the US were to face Russia in a conventional war, there is a serious risk of nuclear escalation between the world's largest nuclear powers. The current conflict presents the US with an opportunity to weaken Russia by supporting Ukraine, do so with international support, and without contact between US and Russian troops. KILLING AND DEATHS OF PEOPLE ARE UNACCEPTABLE. FIGHTING SHOULD BE STOPPED IMMEDIATELY AND PERMA…

> BOTH SIDES HAVE TO BE READY FOR COMPROMISES TO SAVE LIVES I agree with that in principle but I honestly can't see how to achieve that in practice in this situation. Russian leadership currently doesn't seem to care about internation rules. They believe themselves to have a sacrosanct right for greatness and the right to rule and bending to any compromise would be utterly unacceptable in that framing. I don't think…

Agreed. I also have a hard time accepting the idea of any concessions to Russia, but I understand the principle of being willing to consider any (morally acceptable) possibility to preserve irreplaceable human lives.

Also agree we’re headed for a multipolar world, with climate change impacting geopolitics in the Northern hemisphere, majority of the global pop. concentrated around SEAsia, and a looming demographic collapse putting pressure on nation states to act now-or-never.

Re: Euro falls below parity with the dollar

#268

Post by zuzzurro »

croes wrote: post #13
wirrbel wrote: post #11

Earlier quoted context omitted.

Fairly certain that Germany pushed for the value with an easy conversion (2 Deutsche Mark = 1 EUR) and not for dollar-similarity. Exchange rate was 1 EUR for 1,95583 DM

And then some sellers converted 1DM = 1€

And then some sellers converted 1000 Lire = 1€. I still remember looking at shop windows and seeing everything doubling in price. Instant inflation and instant poverty....

Re: Euro falls below parity with the dollar

#269

Post by lkrubner »

thehappypm wrote: post #220
epgui wrote: post #60

Earlier quoted context omitted.

Yes, it is indeed good in that it makes European exports more competitive, but on the flip side, imports are more expensive, which can mean inflation and/or increased sensitivity to supply chain disturbances. I’m sure it causes some other problems as well. (not my area of expertise)

I imagine it would be better for an economy that does huge amounts of exporting compared to importing (like China). Europe does a ton of importing so that side of it sucks.

A currency depreciation naturally leads to a reduction in imports, since the imports become more expensive.

Re: Euro falls below parity with the dollar

#270

Post by philistine »

vondur wrote: post #237

Honestly, There probably needs to be a Federal type government for Europe, much as the US is setup. The EU kind of reminds me of the US when the US was run under the Articles of Confederation before the current Federal system was adopted. It was very messy.

Said like an American. Believing that the oldest, creakiest, least efficient democratic system of government in the world ought to be exported. Europeans are not looking at the US for democratic inspiration; they are looking inward, and good for them.
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