1$ = 1€

yikes, despite the insane money printing the US managed to strengthen the dollar (nvm proxy wars etc)

meanwhile the EU with its tens of thousands useless dipshits is like

This post was edited by JohnnyMcCoy on Jul 12 2022 03:52am

..

This post was edited by Bananii on Jul 12 2022 04:15am

More like both $ and € are weak now.€ is even weaker than doller but the situation is dire for both. A majour recession is in the making..

This post was edited by babun1024 on Jul 12 2022 09:11am

That's not true at all. The US dollar is strong right now, it has gained substantially over the euro, the British pound, the Canadian and Australian dollars and the Yen, it has gained modestly over the Chinese yuan, the Indian rupees and the Brazilian real.

The major reasons for this are three-fold:
- the FED was one of the first central banks which started determined interest hikes
- the US economy was one of the first to leave covid behind
- the US are one of the major producers of fossils and are therefore better positioned to weather a global energy crunch than all the non-producing countries which have to rely on energy imports.

This post was edited by Black XistenZ on Jul 12 2022 09:51am

The main reason the USD is strong is that it's a safe haven currency. Europeans are selling their euros to get USD like crazy right now

The secondary reason is that the Fed have increased interest rates more aggressively than the Bank of England/ECB, so demand for USD increases from FDI

Energy and higher economic growth are also factors as you mentioned

or in short: the petrodollar

probably one of the biggest geopolitical masterpieces in history and it has made a pretty impressive comeback after all the printing

I really don't think its the petrodollar that's the cause of the dollar strength, not this time. The FED acted too late to nip inflation in the bud, but they were still the first major central bank to raise interest rates; and they did it with determination. This has allowed the U.S. economy to open an interest spread with the other major economies and thus attracts foreign investment.

Similarly, the USD benefitted from being further away from the war in Ukraine as well as from being a largely self-reliant producer while all other major economies are net energy importers. Inflation and global energy markets which are out of whack still affect the U.S., but the threat of core industries being shut down due to a severe shortage of oil or natural gas is much lower over there than in Europe, Japan or Latin America. China's insane ZeroCovid policies also contribute.

None of these factors hinges on the USD being the global reserve currency or being the currency for international oil trade.

congratulations to all german net taxpayers, today is the offcial taxpayer remembrance day

from the 1st of january until today the average joe only worked for taxes that are wasted for everything except your benefit

textbook slavery





valid points and of course one major factor is other currencies shitting the bed more than the dollar (thanks to the sanctions lol)

but no other currency on the planet could do this kind of money printing and still on gain others

sure, the average american is suffering from inflation, but in relation to the madness its not even that high

meanwhile in italy

https://www.reuters.com/world/europe/italian-government-could-fall-5-star-shuns-confidence-vote-2022-07-14/

draghi wants to resign, but the state president has rejected his resignation

I thought Draghi was doing a good job, Italy always finds a way to fuck itself