Topic: U.S dollar almost equal to Euro - page 6. (Read 1470 times)

The problem of the emergence of today's "parity" is more negative for the Euro than in 2015. Now, in connection with Russia's terrorist attack on Ukraine, such unpleasant facts for the German economy as the global monopolization of gas supplies for the industrial sector by a terrorist country against which sanctions have been imposed have "surfaced". Not the possibility of a quick solution to get out of the situation. And most importantly, gas supplies have become a mechanism for Russian terrorism against the EU, and especially Germany and France, which in turn are the economic locomotive of the EU. It is for this reason that it is quite logical to assume a recession, and not for 1 year, of the EU economy (read Germany), which by itself leads to a cheaper Euro. Nothing out of the ordinary, everything is logical. I hope in 3-4 years, the German economy, having stopped gas ties with terrorists, will begin to return to its previous indicators.

Yes I think the US Dollar will be more valuable than the Euro in near future. Europe is screwed and I don't see our politicians reacting fast enough to offset all the negative shocks. The Russia Ukraine war is having negative consequences on the whole world economy, but Europe is hit the hardest. USA is pressuring European countries to buy energy outside of Europe, preferably from North America. Cheap Russian gas is what made European countries so competitive, now we have to buy gas for almost 3 times the usual price. On top of that is inflation still rising and the European central Bank is much slower to react than the FED. It might take years for Europe to recover from this.

We know that one of the reasons why this can happen is because the level of Inflation in the US has now reached 9.1% and this is quite a big thing and even this is the highest level of Inflation I have ever felt for the US.
Their prices even in my currency are almost equal and have differed only slightly in the last few days.

The FED is constantly raising interest rates. In this case, investors move their euro savings to the dollar (It's an inevitable end). If the US dollar continues to strengthen, it will be difficult to export American products to the global market. If the euro continues to weaken, it will be difficult to import energy products into the EU. As in everything else, balance is very important in this matter as well. Please let's not experience another global crisis. I'm so bored now.

Generally agree with what you say. There are many things I don't like about the USA, but there are many people who want to emigrate to it, which indicates that there are many countries, for example in Central and South America, where they are worse off.

But on this I do not agree:


The difference between 1 million families and 70,000 families is very significant, and those 70,000 families will soon be receiving benefits of one kind or another.

All statistics are inaccurate one way or another, the reality doesn't change though. The facts are:
- There are kids in US schools shooting each other
- Gun violence is the leading the leading cause of death among children in US, more than cancer.
- The gun violence in general is spread to all states and it is increasing each year
- The number of children with firearm injuries is also increasing every year.
According to CDC it used to be between 4 to 8 per day between 2006 and 2016, whether it is 44 or 21.8 per day now is just details.

It's the same with homelessness in UK. Whatever the real number is, the fact that it has been increasing rapidly this year doesn't change.

I don't know if people see that happening, and it's getting worse as the economy shrinks because of the overwhelming social effects of it. I am not a fan of conspiracy theories, but they seem to have been and are being made and implemented in this life. Personally, I also see a process of decline and distrust from countries that were once the center of the world, and it seems that control backfires and causes polarization and balance to be gradually moved to the center of the world. . It is clear that the position of both the US and European countries is declining, and China's rise in the future is inevitable.

We knew this was coming. Experts were predicting the Euro and USD parity since the inflation tightened its grip. Fed reserve’s rate hikes have boosted USD to a great extent and the Euro zone is still under the clutches of the ongoing energy crisis and recession fears.

The USA has many bad things, such as a health care system for those who can afford it (with exceptions such as Medicare and Medicaid), exorbitant drug prices, an opioid problem, homeless people, etc.

It is usually a better place to live for someone with a high income than for someone who works at McDonald's and it also depends on where he lives, better in Nashville than in Detroit.

However, I don't know if I trust the statistics of that website very much, I think you have a confirmation bias that makes you look for data that confirms what you previously believe, like when you said that more than 1 million families went homeless in the UK in 4 months.


I saw it somewhere, but googling "number 1 country to emigrate to" the first thing that comes up is USA:

https://worldpopulationreview.com/country-rankings/immigration-by-country

Not all websites match, for example this one:

https://reachimmigration.com/en/blog/here-are-top-10-countries-to-migrate-to

But in this web where Germany, France and Holland appear in the top ten, it would be necessary to see if they consider that someone who goes from Bulgaria to Germany is "emigrating", which would be incorrect because there is free movement of people, and as for the aggregate EU that you comment the same: I hope that in the sum they do not count the people who go from Poland to Germany within the sum of emigrations.

This just reminded me of some sad statistics: "Each day 12 children die from gun violence in America. Another 32 are shot and injured". In other words every 21 days there are more child casualties in USA compared to total number of child casualties in a decade inside war-zones like Syria (900 in 11 years!).
No wonder the reverse migration is on the rise.

Of course, ECB CAN'T do anything great right now.
The only choice is to brace for it for a few months and let the others take reckless measures to stabilize the international situation, let the Americans hike the rate, and suffer a bit from the ever-devaluating euro as you have no chance to act right now against the US and act only when the FED will be left out radical options, they can't go on this path forever.

I see now way the ECB will be able to return the parity to even some 1.1 right now without far more serious long and short-term consequences.


Neha, right now the situation is still far better.
Remember that during the last crisis the problem was not inflation, it was a complete collapse of demand, the EU went into near deflation because basically everything was crashing around, this is not the case now, things are still working (literally working, check employment) and this thing can't go over infinitely.

The main factor driving inflation is energy prices, but you can't have them high when the economy is crashing, this is impossible, with nobody working there is nobody using energy and you can see with oil,coal,copper, prices what fear of recession is doing.


Oh yeah, my bad, the crumbling EU is outranked in desirability by the crumbling US...
Anyhow, can you share the source for this? Usually, those polls break the EU in each country so of course, they are lower but overall they outrank the US.


All of them have an economy of around ~450 billion, 1/3 that of Spain, they couldn't have influenced a thing even if they wanted to do.
The Norwegian krone was 0.20 in 2008, it's now 0.10
The Philippine peso was at 0.025 in 2008,  it's now 0.018,
The Canadian dollar was 1.04 in 2007, it's now 0.76,

It's not much the weakness of the Euro now, as the weakness of the US then and return to power now

the possibility that the euro's value or price will decline and be lower than the dollar is possible or has a fairly large degree of probability. because we see that Europe is in the midst of a crisis. spikes in the prices of necessities of life rose rapidly. due to the influence of the strengthening dollar and other factors as mentioned above.
then an economic recession could hit. but considering that Europe is a country that has a good long history. then I think they will look for and find a solution so that at least the euro exchange rate can rise again.

Europe is paying the price for standing by Ukraine. It can be said that this is a summary of the current economic situation in Europe. The sanctions imposed by the United States and NATO on Russia because of its war on Ukraine have led to severe suffering in the European economy. It is clear that the coming winter will be very harsh for Europe, especially in light of Forecasts of the weather will be very cold this year, the rise in fuel prices in advance caused the economic stagnation in the Eurozone.
The funny thing is that I read in some economic websites that: "Investors began to flee to the dollar as a "safe haven" and a reliable means of protection against inflation".
They will soon discover that they made a big mistake because the dollar's situation is not better and America is suffering from inflation as well.

and same thing is affecting the rest of countries considering dollar getting stronger and stronger (costly actually) so as to foreign reserves in other countries are downgrading. Rupee (INR) has also fallen badly recently which is directly hampering the import export business.

For example, in my laboratory when we used to get any ELISA kit from USA at cost of 500-600 bucks now costs me more than 800+ plus including its import duty and swift charges. Everything is so much hiked these days. You can’t get god dam kit cheap which we using for health services. Its bad and dollar rates can hamper anything.

In 2008, 1 euro was worth $1.57 at the peak. That's a 36% drop. Could this have anything to do with expanding the euro zone?

Inflation hitting the Euro Area is due to soaring prices drifting the Euro to US Dollar and price fluctuating around equilibrium. The hike in the US interest rate was one key factor that gave the Dollar its strength over the Euro couple with the effect on Ukraine war having more effect on the Eurozones as compared to the US

I think I understand from what you say that doing nothing is a lesser evil, not that the ECB is doing great.

Do you see much future for the eurozone? They are now worse off than when the sovereign debt crisis was resolved with the "whatever it takes" of Draghi, then president of the ECB, with the difference that now much more has been printed and there is galloping inflation.

I suppose the euro and the eurozone will survive but I see it more possible now than 3 years ago to end up creating a two-speed euro or something.


In reality, the number 1 country where people want to emigrate and send their children is the USA. Then we can debate whether Europe has less inequality or better healthcare for the average citizen, but the US beats Europe on that.

European economy is dependent on its heavy engineering industries and manufacturing units. And these units were dependent on cheap pipeline gas from Russia. EU did self-harm by imposing sanctions on Russia and thereby disrupting the Russian gas flows. At the same time, the American economy got a boost in the form of higher demand for its shale oil and gas. For the US, the primary objective is achieved. They have managed to replace Russia as the main gas supplier to the EU, despite being priced at almost double the previous level.

There are about 40 000 castles in France, about 20 000 in Germany, and every single other country has them at least in the thousands, including the Czech republic for example, which has more than 2000...
Also, the "only" 2 million is highly misleading, such a castle has enormous costs, if something goes wrong it's a monument so you're plus going to have to pay a te of experts for restoration as it was before, plus the army of housemaids and gardeners needed only to keep that thing clean.
I live next to one of those, 2 meters think walls that get warm only in summer, half a meter wide stairs so that at every restoration when things need to be moved in and out they are taken with a crane through the windows, a one hundred meters and 10 meters steep access point which of course you can't get through with a car and so on, you would have been a masochist to live in it. Oh, did I mention two graves? And in this case, you're lucky cause you know where the bodies are... 

https://castleist.com/2-7m-rheinland-pfalz-germany-renovated-castle
Imagine the tip you would have to give to the pizza guy


Yeah, we've been bankrupt since the middle ages, funny how were still crumbling and crumbling, recession after recession and still, this is where all the people from BRICS, CIS, 4 Lions (not the movie) want to live and send their children, much mystery!

I would be curious to know which nations come to mind when discussing hot growing economies of the world to invest in.

One obvious candidate is BRICS. Brazil. Russia. India. China. South africa.

There has also been mention of the four asian tigers. Hong kong. Singapore. South Korea. Taiwan.

There isn't much marketing, investment or hype being thrown behind economies of european nations however.

There are european castles selling for only €2 million on sites like:

https://castleist.com/castles-for-sale-in-europe

Which could reflect a lack of demand for higher income earners wanting to move there.

It might be safe to say, europe has been on the verge of recession for quite some time. None of their joint attempts to develop next gen technology like the euro fighter typhoon have fared well. Policies like austerity have been controversial at best.