Euro Falls Below Parity With the Dollar (reuters.com) 140
The euro has dropped below parity with the U.S. dollar on Monday. According to Reuters, investors fear that "interest-rate hikes in the United States and Europe, aimed at curbing inflation, would weaken the global economy." From the report: Against a basket of currencies, the dollar rose 0.8% to a more than five-week high of 109.02 , not far from the two-decade peak of 109.29 touched in mid-July. The greenback has found support in recent sessions as several Federal Reserve officials reiterated an aggressive monetary tightening stance ahead of the Fed's Jackson Hole, Wyoming, symposium this week. The latest of these officials, Richmond Fed President Thomas Barkin, on Friday said the "urge" among central bankers was toward faster, front-loaded rate increases.
The euro fell following Russia's announcement late on Friday of a three-day halt to European gas supplies via the Nord Stream 1 pipeline at the end of this month. Investors worry that the halt could exacerbate an energy crisis that has weighed on the common currency in recent months.
The euro fell following Russia's announcement late on Friday of a three-day halt to European gas supplies via the Nord Stream 1 pipeline at the end of this month. Investors worry that the halt could exacerbate an energy crisis that has weighed on the common currency in recent months.
significant decline (Score:5, Interesting)
~8 years ago the Euro was worth about USD $1.40. 2 years ago it was $1.20, now less than $1.
https://www.xe.com/currencycha... [xe.com]
It is truly amazing that the US can have a trade deficit with just about everyone and still have a much stronger currency.
Re:significant decline (Score:4, Insightful)
Trump tried to warn 'em... (Score:3, Insightful)
Hint, hint -- it just might have something to do with Europe's dependency on fossil fuels coming from a certain belligerent nation
Germany just laughed and laughed [youtube.com] a few years back when Trump tried to tell them that relying on on Russia for gas was a bad idea.
I wonder what else Trump had right all along that everyone must now learn a painful lesson about.
Re:Trump tried to warn 'em... (Score:4, Informative)
Trump is a clueless blowhard, and what he said back then was total garbage.
“Germany is totally controlled by Russia,” he said. “They will be getting between 60 and 70 percent of their energy from Russia and a new pipeline.”
'But those numbers aren’t correct. Russian gas will only provide a sliver of the overall energy Germany needs. Germany’s energy comes from a diverse mix of oil, coal and renewables. Less than one fifth of the country’s power is powered by natural gas; at the moment, just 9 percent of the country’s power is generated by Russian gas.'
https://www.pbs.org/newshour/w... [pbs.org]
Re:Trump tried to warn 'em... (Score:4, Informative)
This is not about electricity generation which you're conflating with overall energy use. The majority of homes and commercial premises in Germany are heated with gas, and their industry uses vast quantities which cannot be readily replaced with electricity.
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Nobody had said anything about electricity generation.
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Germany is being bodyslammed by Russia with fossil fuels right now. See for example: https://www.theguardian.com/wo... [theguardian.com]
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Nothing in that article says anything about Germany being bodyslammed by Russia.
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No but he only searched for something to support his views, and the headline sounded like that's what it would be...
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just 9 percent of the country’s power is generated by Russian gas
Power generated is a great way of saying "I'm dishonest". Germany is in an absolute crisis right now, a crisis that has zero to do with keeping the lights on. A lack of gas means a combination of either a lack of heating for over half of German homes (40% directly gas heated, + 20% a mixture of gas based district heating or CCS heat recovery from gas turbines), or a lack of gas for industry.
There is already pressure on the large steel industry and petrochemical industry to reduce gas use. All directly leadi
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Yep, and the issue isn't that Germany won't have any gas. It's just that taking Russian gas out of the supply has pushed the price up.
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Any moron who spouts bullshit all day is bound to say something that eventually turns out right. By your logic, Matt Groening is a genius prophet [insider.com], when all he actually did was to throw shit at the wall in metric tons and some of it actually stuck.
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You also made an apples and oranges comparison by saying that a politician giving a warning about future events is the same as a TV show making jokes. If you claim
Re: anonymous coward (Score:5, Informative)
You mean your citation, and no, the opinion of the author is bad in retrospect. Very, very bad. Basically he tries to downplay the hell out of it as if it's just 9% and it will stay that way. 9% isn't a "sliver" either, that's a pretty big portion, and he doesn't seem to even bother to mention that the nuclear plants were being decommissioned, or what energy source would replace them. Let me guess? Neither did you. Trump wasn't the only one warning Europe against increasing their energy dependence on Russia, by the way, that came as far back as 2013 when Germany decided it didn't want nuclear power anymore and decided that Russian gas looked like a better alternative.
'But those numbers aren’t correct. Russian gas will only provide a sliver of the overall energy Germany needs. Germany’s energy comes from a diverse mix of oil, coal and renewables. Less than one fifth of the country’s power is powered by natural gas; at the moment, just 9 percent of the country’s power is generated by Russian gas.'
Curious why the article would point all of this out but not bother to estimate how much of its energy supplies would be coming from Russia after the Nord Stream 2 was going to be complete (which by the way, Germany had every intent on continuing it even AFTER Russia had invaded Ukraine, only changing course a few days later once they realized which way the political wind was blowing.) Granted, Trump is speculating on where Germany would be in terms of how much its energy comes from Russia, but the numbers he gives aren't entirely unrealistic. The article specifically links to this:
https://www.bbc.com/news/busin... [bbc.com]
In there we see 40% of its energy from coal, which they also wanted (at the time) to eliminate, and another 10% from nuclear, which they were (and mostly still are) in the process of eliminating. If we sum the two with their (at the time, though it increased later) 9%, you end up pretty close to 60%. Therefore, it wouldn't have been unreasonable to speculate that 60% of Germany's energy could come from Russian gas at some point in the future. While there are many things to call out Trump on, this really isn't one of them.
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Elaborate then.
Re: anonymous coward (Score:2)
If they were going to replace everything with renewables, then why on earth would they bother building Nord Stream 2? What else would their end goal have been once it was done?
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It's part of the transition, and supposed to keep Russia dependent on Europe. Obviously it hasn't worked.
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It's part of the transition, and supposed to keep Russia dependent on Europe. Obviously it hasn't worked.
Do you actually believe this? They'd build Nord Stream 2 just as a *transition* to some as-yet-undetermined magic baseload renewable energy source that's also not-nuclear? Oh, and said magic will also replace their nuclear and coal too.
I'll at least agree it hasn't worked out well for Russia...or Europe
Re: anonymous coward (Score:2)
How the fuck could that possibly keep Russia dependent on Europe? Russia already was dependent on Europe in every way that it could be. It has also been well known since the 70s that Russia had a long term plan of making Europe dependent upon its fuel supplies, with the ultimate goal of expanding the iron curtain.
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Most renewables cannot provide baseload generation like nuclear without large-scale energy storage (think: reversible hydro).
Some renewables, particularly hydro are good at baseload most that's the exception.
So while SOME nuclear generation might be replaced with renewables, a substantial portion of baseload in Germany would not be and simply could not be. So if they also eliminate coal, what's left besides other fossil fuels (LNG) and ... magic?
You may want to rethink your position on this as your logic .
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You know what they say about stopped watches, right? Given that it's right twice a day, I dare say a stopped watch is a better information source than this bozo.
Re:Trump tried to warn 'em... (Score:4, Interesting)
Germany just laughed and laughed [youtube.com] a few years back when Trump tried to tell them that relying on on Russia for gas was a bad idea.
Is that the same USA that has for years been peddling economic support for eastern / dictatorship regimes? The whole reason the west started massively investing and trading with the likes of Russia and China was due to support a USA led political plan relying on economics, the idea that wealth leads to democracy and stability was literally a US international policy.
Also why the fuck would anyone trust what the USA has said a few years back? This was the same USA that engaged in a trade war with its allies. It's the same USA that spied on the German chancellor. This is before we go through the hundred + year history of American self-centered policy, oh but since we are talking about Trump what was his main platform again? "America first"?
If I punch you in the face would sit down and listen to my lecture on passivism?
Even if it wasn't Trump, and instead someone actually sane, Germany had zero reason to trust anything the USA was saying.
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The Dem's are primping the coolest of the cool cats, the governor of California. He's too cool to even think about running, though. Playing hard to get is always the coolest move one can make on the way to the White House.
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That doesn't explain the past 10 years. Also if you look at most of the other currencies there is the same general trend.
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It is primarily about interest rates. The US is raising rates aggressively, which makes the US$ safer to hold.
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High interest rates don't make your currency safer to hold.
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Depends on how you look at it. Greater rate of return investing in bonds pushes money to the US$, with the side benefit of greater relative stability.
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It sure does if the purpose is to control excess inflation!
That's what this price movement means. The US is doing a better job than Europe at addressing the inflation challenge, at least in the eyes of currency traders.
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Mostly view/large format stuff.
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High interest rates don't make your currency safer to hold.
Europe had negative interest rates (and some countries still do) this is a sure loss. Many goods are traded in dollar, in normal circumstance when an EU company gets paid in dollar they would immediately exchange that to local currency as this would yield a higher interest rate and ensure they could pay local wages/suppliers. Since US rates went positive they carry as much float as possible in US currency and only exchange as needed.
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That's the media headlines, but the reality is much more complicated.
First, Germany has for decades promoted trade over war. Having trade relations with another country was always seen as a good way to ensure peace, because then both countries have something to lose. Germany and Russia especially make great partners because Germany has the industry and Russia the raw materials. Good conditions between Germany and the USSR were also instrumental to ending the Cold War.
Let's not forget that post-Soviet Russia
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Good conditions between Germany and the USSR were also instrumental to ending the Cold War.
You've got very different memories than I do. I remember East Germans saying "fuck this Soviet bullshit" and tearing down the wall, and I remember the West Germans being armed to the teeth for four decades to deter a Soviet invasion. That doesn't sound like "good conditions" to me.
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I didn't say love. But the foundation for the USSR actually leaving East Germany alone and agreeing to the German Reunification in the 4+2 talks were laid decades before and while West Germany was considered a frontline nation by NATO (and official military strategy for WW3 considered it a battlefield that would've been nuked in the case of communist advance) there was also a good piece of the same that had worked to turn the centuries-old hatred between Germany and France into friendship: Trade and cultura
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First, Germany has for decades promoted trade over war. Having trade relations with another country was always seen as a good way to ensure peace, because then both countries have something to lose.
The whole "Trade=Peace" thing has always been foolish, and there are legions of examples throughout history that refute the idea. France's biggest trading partner in 1938 was...drumroll... Germany.
China is one of our big three trading partners in the US, and some years is the outright number one. And yet we're constantly skirting war with them over Taiwan. And for China, they're willing to go to war over a goal they see as far more important than any short term monetary loss. When a nation wants something t
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The whole "Trade=Peace" thing has always been foolish, and there are legions of examples throughout history that refute the idea.
Trade has been the major ensurance for peace throughout human history. That it doesn't have a 100% success rate doesn't change that.
When a nation wants something that bad... usually territory... trade doesn't mean shit.
Sure, but you argue the extreme. In many smaller cases where in older times a war would've been started to settle the matter, we now prefer other solutions.
Especially wars between big players have dropped away entirely in the last 500 years: https://ourworldindata.org/war... [ourworldindata.org]
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Don't be stupid. Autocrats, even more so than democratic leaders, don't rule alone. They have a vast network of supporters, allies, favours-owed, mutually-beneficial-relations, etc. etc.
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It is truly amazing that the US can have a trade deficit with just about everyone and still have a much stronger currency.
Is it that US has a strong currency or that Europe has a weaker currency?
In addition to the current war-related issues, EU consists of many countries. Germany might have a good economy but most EU countries are not that strong.
Re:significant decline (Score:4, Informative)
Quite a few currencies have declined versus the dollar in a manner similar to the Euro. The pound, the Australian dollar, even the Yuan Renmimbi. South American currencies have become relatively worthless.
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That doesn't mean the USD is a strong currency. It just means there's more than one weak currency. The pound and the EUR are interlinked, both are weakening due to the same downward pressure, as are pretty much most non EUR European currencies.
The Yuan on the other hand is heavily correlated to COVID related shutdowns and trade barriers related to China. And South American currencies are a whole different beast.
When Fanta releases a new flavour which no one likes, the fact it gets heavily discounted on supe
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Is it that US has a strong currency or that Europe has a weaker currency?
Commodities (including oil) are paid for in dollars, so there's always demand for dollars which keeps its value relatively high compared to what its "real" value would be if it was based on US exports alone.
The EU/ECB have been mishandling their economy since the early 2000s, just like most countries, but they don't have this safety net to fall back on when the QE chickens come home to roost.
Re:significant decline (Score:5, Interesting)
It turns out that energy storage is expensive.
https://www.youtube.com/watch?... [youtube.com]
Or rather energy storage other than pumped hydro is expensive. Pumped hydro is really cheap when you have a lot of water, a lot of hills, and the weather/climate is warm enough to keep the water from freezing. Germany is a bit short on the things needed for pumped hydro, and Germany makes up a large part of the Euro economy. Watch the video to learn about "cold dunkelflaute", a term we will likely hear plenty when winter comes to Germany.
Energy costs are high in Europe, and likely to only get higher should Russia carry through on the threat to limit natural gas supplies. If Europe starts importing natural gas from the USA and Canada then that will be even worse for the Euro. Moving natural gas by pipeline is cheap, moving it by ship is not.
The cost of energy doesn't explain everything about the changing exchange rates, but it explains some. The fine article even mentions the problems of natural gas out of Russia as a reason for this big shift in the value of the Euro. Hindsight is 2020, but was it really that difficult to see how buying so much natural gas from Russia could be a problem?
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Energy costs in Europe this winter are going to put huge pressure on Europe to normalize relations with Russia. I hope Ukraine doesn't end up getting pressured to settle for partial annexation because of it.
If Europe decides to switch sides and join Russia, then the rest of us should make them suffer as well.
I really like German cars, but if they decide to go back to kissing Putin's ass I'll be done with that habit.
Re:significant decline (Score:5, Interesting)
I doubt Ukraine will be pressured to give up territory. That's feeding the alligator and hoping it eats you last. The invasion of Ukraine is driving NATO to take Russia more seriously as a threat.
https://www.theguardian.com/wo... [theguardian.com]
If parts of Ukraine are somehow carved off and given to Russia then expect what remains of Ukraine to be given membership into NATO. Giving Ukraine membership into NATO is problematic while Russia is actively invading the country. An attack on one member of NATO is considered an attack on all, and so giving Ukraine membership into NATO would mean immediate declarations of war on Russia by all current NATO members. What is more likely is the order is reversed, Russia gives NATO members a reason to declare war and then Ukraine is admitted as a member to keep Russia from trying an invasion again.
Building energy storage to solve Europe's energy problems is a bad idea. This construction would produce CO2, take materials and labor, and not produce any energy. In fact storage is an energy sink because it's never a 100% return of the energy out on the energy put in. Europe needs to be drilling for natural gas and building nuclear power plants. The EU declared that natural gas and nuclear power were "green" energy, because doing otherwise meant they'd have an energy shortage or they'd have to give up on their CO2 emissions reduction efforts.
Of course there were objections to EU supporting natural gas and nuclear power. We'll see if these objections, and the objectors, survive the winter.
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I doubt Ukraine will be pressured to give up territory. That's feeding the alligator and hoping it eats you last. The invasion of Ukraine is driving NATO to take Russia more seriously as a threat.
You think that anyone cares about Ukraine.
The same day it becomes more beneficial for the geo-political goal of the US (and let's be honest here, Europe is the US's lapdog in this) to drop Ukraine, it will be dropped like a hot potato. At the moment it is useful because Ukraine helps bind and drain Russia's power.
Ukraine isn't changing NATOs opinions about anyone. NATO has always considered Russia it's enemy, has for decades moved towards encircling it, and only total idiots were surprised by Russia attacki
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The EU is not the US's lapdog. One of its main strengths is that it doesn't have to suck up to other big economic blocs, because it is one too.
Ukraine is on fast track to join the EU. She won't be abandoned.
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The EU is not the US's lapdog. One of its main strengths is that it doesn't have to suck up to other big economic blocs, because it is one too.
Is life better in the parallel universe you're from? Europe has no independent military, and rarely appears in world politics as a voice. It has a strong economy, but plays "follow the leader" whenever the US burps.
Ukraine is on fast track to join the EU. She won't be abandoned.
As a european, I very much hope reaason will prevail over that. Letting Ukraine join the EU would break pretty much every rule the EU has on membership. Even before the war, Ukraine was a poor, corrupt shithole country. I know lots of Ukrainians - all of which left the country to study or work in
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I doubt Ukraine will be pressured to give up territory. That's feeding the alligator and hoping it eats you last. The invasion of Ukraine is driving NATO to take Russia more seriously as a threat.
You think that anyone cares about Ukraine.
I don't care about Ukraine. I care about the post-WWII international norm that it is not acceptable for countries to expand their territory through force of arms.
This norm represented an enormous advance in human civilization, and one that we must recover and reinforce.
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I totally agree with you on that.
So why are we not breathing down Turkey's neck for doing exactly that in northern Syria? Ah yes, they're fuckers, but they're OUR fuckers. I forgot the rules don't apply to friends.
Ok, cynism aside, I do agree with you that this is a good and important principle.
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Oh come on. Even US hardliners like BrzeziÅski or Mearsheimer openly say that.
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It doesn't matter who says it,
Of course it does. You know, some people have a life-long career in international politics and they might know a thing or two that random /. users don't.
the old Russian empire didn't need NATO pinpricks either.
The old Russian empire ended in 1917 that's more than a century ago. You could just as well claim that France is still the same as it was in Napoleon times or that India is British colony. If you want to draw a line from the Tsar to Putin then you need a bit more evidence than a few hysterical journalists writing propaganda pieces in the middle of a war.
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Re:significant decline (Score:5, Interesting)
As the months have passed, German resolve seems to have strengthened against being dependent on Russian oil. Russia hasn't helped their case by playing childish games (artificially stopping the flow through nordstream 1 because of reasons). Germany is going out of their way to find alternative sources. Sooner rather than later, Russia is going to lose that sweet oil cash flow, maybe by December, but certainly by April.
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As the months have passed, German resolve seems to have strengthened against being dependent on Russian oil. Russia hasn't helped their case by playing childish games (artificially stopping the flow through nordstream 1 because of reasons). Germany is going out of their way to find alternative sources. Sooner rather than later, Russia is going to lose that sweet oil cash flow, maybe by December, but certainly by April.
Russians have screwed themselves in the long term, even if Germany/western Europe looks to acquiesce in the short term because the Germans remember and think for the long term. They'll be looking to get away from anything Russian, it may take a while, but if the Germans are committed, the Germans will do it. No one is treating Russia as a reliable trading partner any more, sure countries like India and China will still deal with them, but they'll use their new found position as their dominant trading partne
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While the winter in Germany certainly can reach -20 degrees Celsius, I very much doubt it will. Has been years since the temperature in winter fell more than 2-3 degrees below zero. My skis have been standing in the cellar for a very long time.
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That's a nice twisty way of saying that Germany has shot itself in both feet and is now jumping up and down frantically, looking for bandages.
The point is that they'll also be able to find them.
Winter in Germany can reach -20 ÂC.
Really? Where?
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Really? Where?
I've lived in northern Germany for most of my life and I'ver personally experienced such temperatures several times. They've become more rare now due to climate change,
If you want something less anecdotal - you could've found this: https://www.wetterdienst.de/Kl... [wetterdienst.de] - with a simple Google search. It shows the lowest temperatures measured in various places, and those records go down well over -20 C with the absolute record being - 37.8 C
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Wow that's a great link, thanks.
I would guess that those records are just a cold snap, not something that is prolonged through the winter.
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The records are the lowest ever recorded, so they are spikes, yes. Could've been just a day, could've been a week or more, the numbers don't tell.
The same page has longer periods as well, and we've had winters where the temperature was below -5 C the entire winter.
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The same page has longer periods as well, and we've had winters where the temperature was below -5 C the entire winter.
That would be easier to handle. As long as it doesn't end up being a winter where it's -20 C for the whole winter, I think Germany will be ok in terms of heating.
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Just as with the spikes, "below -5 C the entire winter" does NOT mean it is exactly -5 the whole time. It means it never went above -5, but I reckon for a considerable part of that winter it was quite a bit colder than that. And if gas really becomes an issue, then a month of -10 would be serious trouble for lots of people.
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Indeed, if gas becomes an issue, then even -3 would be trouble for a lot of people.
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Most somewhat modern houses have good enough isolation that they'll lose maybe 1 degree per day if you keep the windows closed (that's the rate my house loses heat in winter when we're away and turn the heating down) and electronics, people and other things that give off heat would counter it somewhat. If it's not a big house, I figure one or two electrical heaters can keep it above freezing.
But you wouldn't want to live in it if it's barely above zero.
Re: significant decline (Score:4, Insightful)
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The Euro was worth $1.22 in May of 2021 and only $1.12 in January of this year, well before the conflict started. The methane problem doesn't explain that decline.
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The methane problem doesn't explain that decline.
The fine article didn't claim that was the only cause. The dip in Euro below parity with USD happened after Russia threatened Europe's natural gas supply. The Euro was weak before, it just got weakened more because of Russia. This one event doesn't explain the falling value of the Euro for the past year, but it does contribute to the decline in value in the past few days.
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The long term trend is down to a few things. Brexit for one, that's been a disaster from start to finish. Europe also got hit pretty hard by COVID, and unlike the US that means some big healthcare costs for governments. We also had furlough schemes that were relatively generous.
This latest dip is both because of Russia and because the US just announced a massive stimulus package, and a serious attempt to address climate change.
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You don't like my solution? Then what is your solution? I agree with the EU that they need more natural gas and nuclear power. The nuclear power will take longer to pay back on that investment but natural gas drilling should pay off quickly.
What's the alternative? Windmills, solar panels, and batteries? How much does that cost? How long until we see energy produced? There is a natural gas shortage problem, so what do you plan to do about that?
I find it difficult for someone to claim my idea is bad if
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It is truly amazing that the US can have a trade deficit with just about everyone and still have a much stronger currency.
Other countries intentionally depress their currency because they want to strengthen their manufacturing base.
America is willing to be consumers, even at the cost of losing some manufacturing.
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Not interested in idle speculation. The EU didn't intentionally depress the Euro.
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There's no speculation here. I would give you citations, but you only read things to confirm your own biases.
You don't know how to learn.
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You've obviously got nothing.
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Dude you've proven multiple times in this story that you have no reading comprehension.
Duude! You've been doing that every day for the past however many years since you wandered in here.
You're one of the very neckbeards that ruined this place.
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Not interested in idle speculation. The EU didn't intentionally depress the Euro.
Err, yes they did. It's called PIGS. Germany wanted the weak economies included in the Euro to hold it down. That's why they turned a blind eye to these countries breaking the Euro membership rules right up to the point where it looked like they might leave. Then they turned the screws on to prevent it. If Greece had left in 2008 German exports would have become more expensive as the Euro increased in value.
I take it you don't pay much attention to the news.
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Trade is only one small component of what determines the *relative* value of a currency.
But if you want to focus on trade you need to remember that the value of the USD is unchanged. It's the value of the Euro which has dropped, and that's is largely due to a drop in buying power of a currency whose GDP is based on an energy input that has significantly increased in cost.
Remember how in 2008 you had a financial crisis, one that many other countries were somewhat insulated from? Well the USD dropped heavily
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The Untold Story Behind Saudi Arabia's 41-Year U.S. Debt Secret
https://bloom.bg/1O04ymn
Time to plan that European vacation (Score:2, Funny)
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I'm going to buy all kinds of shit, throw money around, generally act like an asshole.
That's what Americans usually do anyway. What's different?
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I'm going to buy all kinds of shit, throw money around, generally act like an asshole.
That's what Americans usually do anyway. What's different?
That's only in third world countries. In Europe, Americans Ooohh and Ahhh at European sophistication, usually while they sneer at us. Especially in France.
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So you'll be an American tourist, what's new about that?
It's about interest rates (Score:5, Insightful)
The European central bank's interest rate is 0.19%, The USA's interest rate is 2.25 to 2.5% depending on straight up interest or prices paid for overnight buy backs. But in general use 2.5%, 2.3% more than the virtually nothing in the EU. That will cause the dollar to rise against the EU. If you want a simple example that helps the rise, investors will sell fixed securities in their own country to buy fixed securities in a stable country that has a significantly higher interest rate. That's just one thing. If the EU were to raise interest rates, the slide in the Euro would at a minimum, slow. The Canadian dollar has also risen against the Euro lately, and its interest rate is also 2.5%. It is falling somewhat against the US dollar the last little bit as the US interest rate rose, even though the interest rates are basically the same. That's because there are other factors, but between the EU and the USA, the interest rate has to be a big factor. The war also, because of uncertainty and probably the massive unexpected new debt from massive renewed defence spending. But I don't think many believe Europe will be invaded, but better safe than sorry.
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Any time you say "it's about" consider yourself either wrong or insufficiently informed. What drives currency value is an incredibly complex multivariate problem.
The interest rates is a factor. As is trade. As is national debt. As is COVID. As is the cost of energy. As is GDP. As is consumer spending patterns and sentiment. As is inflation. As is monetary policy (QE).
Better still they are interlinked with each other, so adjusting one variable may have an impact on another leading to a net zero change in the
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There are multiple factors, but generally speaking you are wrong. Interest rates are a big factor. People who trade in currency move it to where it will make most money. And fixed securities is a very big part of that, which are affected by interest rates. This is seen over and over and over, over decades.
I have Bored Ape NFTs so I am safe (Score:5, Funny)
from all this misery.
I'm so glad Slashdot covers mainstream news! (Score:4, Informative)
It's not as if this shit isn't everywhere else, begging the question why space filler best kept to Yahoo defiles Slashdot.
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Slashdot is a news aggregator. By definition everything covered is "everywhere else". What is going on in the world also happens to be "stuff that matters", and Slashdot historically has always enjoyed deeper discussions on the economy, and incidentally this is one of the most commented on articles here currently, certainly more so than any tech article.
Maybe /. isn't for you?
Re: (Score:3)
Biden doesn't have a knob to turn that controls inflation I agree. Germany and France have inflation less than the US. The EU as a whole is shown as 9.8%, the US is 8.5%.
https://tradingeconomics.com/c... [tradingeconomics.com]
Re:Inflation-- (Score:4, Informative)
Biden doesn't have a knob to turn that controls inflation I agree. Germany and France have inflation less than the US.
I don't know about the details of German inflation but France has effectively nationalised a chunk of its inflation by capping energy prices and paying for it out of taxation. That's knocked quite a chunk off the official inflation figure but people will still have to pay for it.
Re: (Score:2)
And if he did, chances are Biden couldn't find the damned thing....hell by now, I'm guessing his handlers would have to give him notes in large type explain wtf a "knob" is.
C'mon man!
Re: (Score:3)
No,it just means he is causing inflation elsewhere too.
Re: Only solution (Score:2)
Re: (Score:3)
Yeah, I don't get either why they waste their resources to artificially keep its value up instead of using that money to stabilize the flailing economy but hey, never disturb your enemy when he's making mistakes.
Re: (Score:3, Funny)
You misspelled 'Rubble'.
Re: (Score:2)
The Ruble is not at an all-time high.
Re: (Score:2)
Re: (Score:2)
Guess /. isn't blocked in Russia yet.
Re: A global economy is not really a good thing. (Score:5, Insightful)
Re: (Score:3)
It would be a good lesson in modesty.
The word you were looking for is 'humility'. 'Humility' and 'modesty' are not synonyms.
There are a lot of countries in the world in which life standard will not change much when the global economy collapses. They probably will have a laugh when they see us struggling with the stuff they go through every day.
They won't see us doing anything. If we stop talking to them, they're physically incapable of talking to us or seeing what we're doing on their own.
We might be better off. Out of sight, out of mind. When they can't see us, they'll forget to hate us. When we can't see them, we'll stop trying to 'fix' their problems.