81–90 of 286 posts
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.
The problem they're having is with natural gas, which they need for winter heating
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…
>This is great for German exports. Expect to see more Mercedes Benz in the streets of America. A lot of MB sold in the UK are made in Mexico.
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…
> 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:
The producer prices are rising because of the gas prices
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…
Earlier quoted context omitted.
Its both really. In Europe you can’t do innovation, or it’s an order of magnitude more expensive.
You can do innovation, the problem is scaling up to the mass market. The EU is supposed to be a massive single market at scale to rival the US and China, and in some ways it is, but it still has a fragments cultural and legal landscape. The gravitational pull of the US on European dev talent is really hard to ignore. Every year the cream of European IT graduates move to the US because that's where the big companies a…
Earlier quoted context omitted.
Its both really. In Europe you can’t do innovation, or it’s an order of magnitude more expensive.
You can do innovation, the problem is scaling up to the mass market. The EU is supposed to be a massive single market at scale to rival the US and China, and in some ways it is, but it still has a fragments cultural and legal landscape. The gravitational pull of the US on European dev talent is really hard to ignore. Every year the cream of European IT graduates move to the US because that's where the big companies a…
I assume this should be good for EU economy on the long run? Like exports from EU to US are now more profitable. Or am I missing something? Can someone with more understanding/background explain how this might effect production and exports?
Earlier quoted context omitted.
The ruble is so strong because russia cannot spend money anymore because of sanctions. I'm living in Germany, the biggest problem is the inflation caused by energy prices. It's still lower than in the US or the UK, but people are starting to struggle. Business is going well as Germany is mostly export-driven, but companies don't want to give out rises.
I think it's that Russia is pegging the Ruble to a fixed value of gold and requiring all nations importing from Russia to use Rubles to buy their Russian exports. The only way to get Rubles to buy your imports is to give Russia gold at the rub-gold exchange rate set by Russia. This peg, iiuc, is one-way. As in, Russia gives you X rubles for Y gold. You can't, however, redeem your rubles the other way around. So... is…
> German economy, among the most exposed to disruptions in Russian gas supply, is "likely" to suffer a recession over the winter if the energy crisis continues to deepen At this point I feel the EU is pretty much done and the war just showed how weak the EU leadership is along how individual member nations acting sometimes totally against each other (see France doubling down on nuclear while Germany does the opposite…
Let the Russians bomb and invade Washington State and we'll see how the dollar does.
Earlier quoted context omitted.
> 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…
> They say they’re down 10% (20% sanctions adjusted) from February [1]. That’s a decrease, but it’s not burning. (Obvious disclaimer: they’re probably lying.) That sounds like burning to me, even at the improbable 10% level.
Fair enough. It’s a steeper drop than I expected before looking it up.