The Euro is now at par with the Dollar. Twenty years of history wasted in pursuit of pro-European utopias
By now he has done it: the euro has practically returned to parity with the dollar. After twenty years of illusions and pursuit of utopias of “Austerity” and “Stostnibility”, the revelation that the European industrial system was but a fragile Germanophilic chimera fueled by low-cost Russian gas and oil is in front of everyone. As happens in any economy, the collapse of the production system, or of the illusions that fed it, takes money with it. The "Eurone"; the currency that "was supposed to protect us" collapses and returns to the values of twenty years ago, (Tradingeconomics chart)
All this is also driven by a particularly strong US dollar, also because, unlike ours, and despite all the weird plans of the Biden administration, the US still has an industrial and military complex based on strong national energy production. So, in this moment of crisis, they remained an anchor of solidity. Here is the Dollar index, the index that measures the dollar against a basket of currencies:
The energy crisis has an impact on the Euro because, without industrial production, or with non-competitive and displaced production due to energy costs, the trade balance and therefore the current account of the Euro zone, so the currency, to make it even more profitable. competitive exports, must devalue. The revenge of the real economy over the financial one, that of spreads, of ugly and bad debt, of the ECB that does not know what to do. Because without a strong industrial system and without production factors (adequate workforce, raw materials, energy, technology, etc.), currency, which is a mere object of exchange, is worth nothing in itself. Instead we wasted twenty years without public and private investments, without diversification of energy sources, without real cultural and technological growth, without a real university and school, taking care of nice amenities from "Sustainable travel", to "Gender", to "Europe guide ethics ”, to politically correct in all its forms. Now reality has passed to present the bill and it will be very long and very salty, probably from extinction.
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The article The Euro is now at par on the Dollar. Twenty years of history wasted in chasing pro-European utopias comes from ScenariEconomici.it .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/leuro-e-ormai-alla-parita-sul-dollaro-venti-anni-di-storia-sprecati-per-rincorrere-utopie-europeiste/ on Mon, 11 Jul 2022 15:00:38 +0000.