EUR_irl

732

Trump wants to devaluate the dolar.

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u/Trolololol66 1d ago

Let him win!

137

u/Mr_Wolverbean 1d ago

He needs to keep winning!

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u/I69UrMomBitch 1d ago

No I can't take it no more, it's to much winning.

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u/matts_drawings 1d ago

No, it isn't. We have to keep winning. We have to win more.

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u/BABA375 1d ago

He's going to win so much that he will get tired of winning

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u/Ready_Guide869 1d ago

He is physically incapable of winning (it's opposite day)

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u/weisbrotstyle 20h ago

Why do I have the slight feeling that i'am missing some sort of insider joke here...

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u/Desperate-Present-69 18h ago

Suffering from success

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u/Fudge-Jealous 1d ago

Stop whining and keep winning!

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u/Odd_Appearance_Dude 1d ago

Cracked me up 😂

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u/vafran 1d ago

I think Trump misspelt whining

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u/immellocker 21h ago

r/underratedcomment

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u/utterbbq2 1d ago

Please Mr Trump, it is tooo much winning, I dont know what to do with all the wins, it is too much wins!!!

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u/Cbrandel 1d ago

Someone should make a Trump AI remix of this classic song.

https://youtu.be/9QS0q3mGPGg

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u/robipresotto 18h ago

So much winning 😂

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u/indorock 1d ago

Devaluating the dollar will mean cheaper domestic labour. His priority is to re-industrialise the USA,and in order to do that he needs to make the costs of running a factory comparatively cheaper than outsourcing it to the global south. Weakening the dollar is one way to do this. The trick is to not weaken it so much that the USD ceases to be the global reserve currency.

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u/ipsilon90 1d ago

Even with a devalued dollar the cost to make something in the US would still be insanely high. Labour in the US is still very expensive.

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u/indorock 1d ago edited 1d ago

Sure, as low as the minimum wage is in US, it's still higher than what a Bangladeshi worker makes, even after adjusting for cost of living. But he wants to bring down that gap so that the price of foreign production + transport costs + tariffs + lower dollar will all combine to make domestic production as cheap if not cheaper. It's a pipe dream and it will certainly mean the income divide in USA will become even worse than it is now, but that's the plan anyway.

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u/exessmirror 1d ago

As long as his oligarchs friends make money he doesn't care that the common person can't afford to buy groceries. Which ironically enough is why they elected him.

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u/larousteauchat 1d ago

So basically what you say is that he wants to align the USA on China ?
Cheap labour, strong industry, a lot of export ?

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u/xaina222 1d ago

The labor parts is extremely important, turns out you need a population thats experienced in building and production instead of just service workers.

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u/PlasmaMatus 1d ago

It also won't happen during his presidential terms. Investors want stability and Trump is the opposite of stability.

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u/Erska95 20h ago

Even if it was cheaper no company is going to do the massive task of bringing all their production to the us when the most likely thing is that the tariffs have a maximum lifespan of 4 years. After 4 years when the tariffs are finally called off at the latest, any company that spent money bringing production to the us is going to lose massively

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u/Corr-Horron 1d ago

Labour is going to be cheaper. You will have to work to survive.

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u/Iron_Aez 1d ago

You'll also need to be paid more to survive...

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u/Seidenzopf 1d ago

laughs in 19th century capitalism

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u/Corr-Horron 1d ago

Well, I don’t think that will happen. What will probably work is a commitment to the soon-to-be-formed „sports clubs“. Marching in front of Trump might feel weird at first, but hunger makes you want to.

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u/standish_ 1d ago

Your survival has been deemed unprofitable.

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u/Iron_Aez 1d ago

no people no workers and no sales. psure this fucks the capitalists too

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u/exessmirror 1d ago

These people have so much money that it won't matter. They make this sacrifice for political power and in the end they will get richer because of it regardless, even if short term they have a little bit less. Also most of their money is tied up in assets which won't necessarily devalue due to this.

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u/DIABLO258 1d ago

We already have to work to survive

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u/noclue72 1d ago

because they're all special

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u/huzaa 1d ago

Not, if the dollar gives up a lot of its value. What would happen if 10USD would be = 1EUR? Labor would seem pretty cheap...

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u/LuxTenebraeque 1d ago

Depends on the degree of automatization - not necessarily today, but in the intermediate future. At the same time shifting people into gainful employment over artificial busywork would be a good and required strategic move.

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u/ActuatorItchy6362 21h ago

So we should continue to use slave labour outside the US while that vast majority of Americans work for scraps that won't even allow them to rent a studio apartment without roommates?

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u/ipsilon90 21h ago

Arguments like these are absolute crap, of course you shouldn’t use slave labour, but what we are discussing is how exactly to do this. The discrepancy is huge, in my field the money you pay for a junior can buy you a mid in Europe or a senior somewhere else. What is the plan, devalue the dollar to 20% of its current value and deal with the catastrophic repercussions? Everything in the US is made for expensive living. A 1200 sq.ft. Home is considered ok in Europe. In the US that is a garage.

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u/ActuatorItchy6362 16h ago

Sorry but "fixing" the economy is like tearing off a bandaid. It's gonna hurt. The fact is that we never should have let it get to this point in the first place. Our politicians have been kicking that can down the road for decades, now we are at the point that someone needs to fix it before it completely collapsed. American industry has been gutted for far too long and we've been using cheap foreign labour to hide the fact that we are a poor nation who can't afford anything. If we keep on this path we won't even be able to afford Chinese goods because we simply don't have enough industry back home. And it's not like it only "hurts" America. China, Mexico, all the other hotspots for cheap goods rely on America to fuel their poverty industries. The whole world needs to restructure their economies.

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u/MephiasStrom 16h ago

The United States arent a poor country, the americans are poor people becuase your 1% elites took all the profit from the globalization process and left the common man holding the bill... and you just elected them to fuck ypu over even more. The economy will fet better, everyone's life will become even fucking worse for it.

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u/Curly_Shoe 21h ago

Which is funny, the same is True here in Germany (labour is expensive) but we get decent healthcare and a somewhat working Pension out of it.

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u/ipsilon90 20h ago

Labour in Germany is still cheaper than the US.

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u/Curly_Shoe 16h ago

So where is the money going? It's not going to the people (or, is it?) and not going to Fund a decent System. It's not away, it's just with someone else.

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u/Successful-Sand686 1d ago

Putin : aye, Trump, weaken the dollar so the usd ceases to be the global reserve currency

Trump: yes sir!

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u/No-Refrigerator-1672 1d ago

That's the price Trump must pay for taking Putin as his personal tutor on "dictatorship 101" classes.

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u/HamHusky06 1d ago

You’re giving him a lot of credit here. I think he’s imposing tariffs to keep the money for himself for his proposed “wealth fund.” Everything else is so Putin is happy.

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u/Luigi-Sky-Diamonds 1d ago

Yea... sure...

But for example Nigeria also has a fucking weak Currency... you think its smart to wanna be like Nigeria

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u/Adventurous_Touch342 1d ago

My brother in Christ, unless USD will reach 0,2 Euro he still won't be able to compete with Eastern Europe, let alone China...

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u/Odd_Appearance_Dude 1d ago

When a country's currency loses value, imports become more expensive, driving up consumer prices and reducing purchasing power. This could also trigger a price spiral: Rising prices lead to higher wage demands, which can result in further price increases. Overall, everything becomes more expensive.

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u/feedmedamemes 1d ago

Yeah, no. There is no underlying reason except a giant money grab for him and his billionaire friends. That's it. If he really wanted to re-industrialize raw materials and vital preliminary products would have been excluded from the tariffs.

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u/Amckinstry 1d ago

If he wants to reindustrialise then he needs to stop destroying the science base of the US, its core strength. His current defunding of PhD studentships, postdoc and university funding and attacking all the NSF, NASA, NOAA etc will mean there's no-one there in 5 years to run these new factories.

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u/Defiant-Plantain1873 1d ago

His priority is to destroy the US economy as instructed by his boss putin.

I’m undecided between putin having blackmail on trump or trump just being a russian sympathiser.

I’m very sad that he got in, frankly i wouldn’t be surprised if russia interfered in the election, they did in 2016. I’ve always wanted to visit the US, maybe even move there. Boundless beauty, but trump and putin are destroying everything about it that makes it good. As long as they don’t start ripping up the national parks it will still be somewhat salvageable

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u/indorock 1d ago

I wish it was that simple, but it's not. The ones who came up with this plan (which isn't Trump) have nothing to do with Trump's love affair with Putin. If you don't believe me just ask other unbiased American or European economists.

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u/Defiant-Plantain1873 1d ago

I think it is actually quite that simple. Trump has the right personality and intelligence for being manipulated. All his policies come straight from the anti-atlanticist, Aleksandr Dugin playbook.

Putin hasn’t just lucked into having a US president, who we know has been having contact with Russia since the 80s and is widely believed to be an actual Russian asset, who just so happens to implement policies that almost exactly line up with what was written in Foundations of Geopolitics nearly 30 years ago. It’s been a long hard slog for Russia to get to this point. While everyone in the US and Europe sat idly by unwilling to take any action to counter this known issue until it was too late and Russia has managed to infiltrate the democratic process of half the western world

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u/ConsultingntGuy1995 1d ago

Re-industrializing and deporting migrants? Nah..

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u/Thalric88 1d ago

The trick is to not weaken it so much that the USD ceases to be the global reserve currency.

Yeah, I don't think loss of value will be the reason the USD will stop being the global reserve currency. No one wanting to trade with the US however is looking likelier by the minute.

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u/Timely_Challenge_670 1d ago

LOL. You think he actually has an economic plan?

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u/Sherman_789 1d ago

Re-industrialisation, if at all, will only produce AI-driven factories in the US. I can't see lots of jobs being created in this day and age by industrialising. It's all AI now, and the Americans will suffer from inflation while losing their jobs.

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u/tom_zeimet 1d ago

Devaluing the dollar won’t do anything to boost exports if half of the world is tariffing your products (that are too expensive anyway because of high manufacturing costs).

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u/Dicethrower Europe 1d ago

The point is to tank the economy so hard that he and his wealthy friends can buy up everything for next to nothing. If they weren't short selling stock already, they're going to be buying in a few years right before he leaves office.

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u/Meritania 1d ago

Yeah they want to do to the US economy that Putin & co. did to the post-Soviet one.

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u/Apophis40k 16h ago

Holy shit i think you are actualy right. Thats one theory I could actualy see

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u/DaVirus 1d ago edited 1d ago

I get why people say this, but it is not true because it misses one key point:

These people don't actually have any money. They leverage debt and that debt is based on the valuation of their assets.

For Musk to buy anything that is now cheap, he needs to get a loan on his assets that are ALSO tanking.

On top of that, the dollar itself is crashing, so they can't even make liquidity out of the contagion effect in international markets.

The reality is much simpler: these Nepo babies thought they were smarter than they actually are and they can't drive this car.

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u/vKessel 1d ago

I hope you're right!

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u/DaVirus 1d ago

Just look up what the price of Tesla needs to drop to so Elon gets margin called on his X loan. I can't remember that number out if the top of my head but it's within possibility lol

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u/UnsanctionedPartList 1d ago

I don't think he's going to get margin called in the current climate. Any bank fucking with the nobility would have more than one agency breathing down it's neck like a pack of administrative attack dogs.

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u/Weary-Connection3393 1d ago

This is what it has come to. They are in the strongest office in the world and they reject any previous checks and balances that office had. No institution will stop them: no bank, no court, no military.

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u/TheRealCovertCaribou 1d ago

Overthrowing tyrants is the duty of the people, according the US Declaration of Independence.

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u/Jazzlike-Wind-4345 1d ago

This. Only this. People really need to stop pretending that Trump and co. are actually a cadre of geniuses, because they’re not.

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u/DaVirus 1d ago

And it's not like it's a theory. This is what the Signal leak demonstrated.

They are dumb, even in private. This is not an act.

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u/Outrageous_Reach_695 1d ago edited 1d ago

Hyperinflation would also be an effective reduction in minimum wage. There are 13 states (and DC) that do adjust state minimum, but most of those use the CPI published by the Bureau of Labor Statistics.

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u/indorock 1d ago

It's a lot more complex than that. It goes far beyond just enriching the oligarchs, Trump literally wants to create a new economic and security world order, something which hasn't happened in 40 years.

Here is a video from my favourite economist YouTuber explaining it. Don't let the title fool you, this is not some pro-MAGA shite, but he is breaking down the whole "plan" from the perspective of Trump's trade and economic advisers. One is a Harvard PhD graduate so not exactly a dummy. There is a method behind the madness, no matter how self-serving it is. There is a huge chance the plan will fail (and we are all hoping it does).

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u/Septopuss7 1d ago

Favorite comment on this video:

Having a plan does not exclude that plan from being completely stupid

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u/Corr-Horron 1d ago

Conclusion: the ‚plan‘ would make sense, if the rest of the world were as blinded like the uneducated US trumpists.

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u/FirstEvolutionist 1d ago

He even says so in the video. There's no trust for stability if allying oneself with the US. There's no mention in this plan of where the investment would come from either.

Desperate people could in theory accept low wages if the job is stable... but it would take a lot of investment and then yesrs of construction for that to become an option.

People are more likely to revolt before that happens, especially considering the technology aspect where factories don't actually need that many people anymore.

Oh, and that "huge" consumer market in the US is worrh next to nothing if people suddenly can't buy shit anymore, due to unemployment, not caused but worse because of tariffs, and a lower acquisition capacity due to a weaker dollar.

Add to that an outdated military struggling to keep up with most recent changes in armed conflict and there's no benefits to being in the green bucket: no trust, no protection, no consumer market.

There are so many holes in that plan that I believe they might just cause the opposite to happen and instead of reshaping the US as a world economy in a new order with reigning peace, they will destroy the US and cause wars, maybe not as serious if the rest of the world keeps trading and peace as a priority.

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u/CriticalScion 12h ago

Even if it's all true it's such an indirect way of re-industrializing anything. Just sheer hope that as a side effect of fucking the US up that we also end up being our own sweatshop. It's like the trickle-down effect of re-industrialization.

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u/altriun 1d ago

It's weird how he talks about how the dollar is too strong and other countries would need to make their currencies stronger to remove the tariffs. But the dollar is only getting weaker over the last decades, why would they ask other countries to make their currencies stronger when this was already the case?

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u/Seidenzopf 1d ago

Having a harvard degree doesn't make you smart

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u/SaberStrat 1d ago

As the Oligarchs did in early post soviet union russia.

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u/Cybernaut-Neko 1d ago

Oh yes it will ! They'll will be saving in euro to hedge against the inflation that will create a toppling point where the dollar loses it's value and trust and the euro will take over. Producing in the States will be dirt cheap for Europe.

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u/LOLofLOL4 1d ago

Let him cook. The more America punches itself into the Face, the more everyone else wins.

Until we get some point of no return, then it's WW3. Eventually it will go south.

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u/Jazzlike-Wind-4345 1d ago

Assuming the U.S. even has the funds to start WW3. 🤣

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u/LOLofLOL4 1d ago

Oh no, they do. As soon as Nukes were Invented, it became insanely cheap to run Wars, as they only really lasted a few Hours. Well would have if… well, you know.

The expensive part is preparing for a War, and the US is absolute S tier here, they've got all the Bells and whistles. World Leaders, not economically or diplomatically, but Militarily.

Problem (Well, if you can call it that) is that they are far too busy with internal politics, because their Constitution is fucking whack as shit and they are too proud to redo it from scratch, so instead they throw way too many Amendments in there.

So in conclusion, they spent far too much money on something for the sake of spending money on it. If they actually used their Shit, everybody else would be boned.

(pls dont become competent americans)

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u/pw_is_alpha 1d ago

Too scared to redo it from scratch. Probably rightfully so.

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u/PM_ME_DATASETS 1d ago

Even the Americans are winning they get exactly what they voted for.

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u/LOLofLOL4 1d ago

I wanted to put a "fell for it again award" here, but images are not allowed. Just imagine that part.

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u/Bossitron12 1d ago

Who would even fight a war? Russia isn't invading Europe, it would be suicide now that we're rearming, China might invade Taiwan tho, but at that point it wouldn't be a world war, at best you get USA + Asian allies trying to contain China but it would be an Asian war, not a global one, we might even make a buck or two if we sell them weapons!

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u/meerkat23 1d ago

Which means labour will be cheaper, which in turn means manufacturing may become cheaper which means in a way Trump is creating jobs... You'll just need 3 jobs to pay the bills. So fucked up

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u/medium1080 1d ago edited 1d ago

The dollar is so important because people trust in the stability of the US. That's gonna change. How many countries rely on the dollar instead of their own currencies? How many national banks sit on billions of dollars to safeguard their own economies and try to project stability by association with the US through the dollar? How long will the Petro-dollar remain uncontested before it gets replaced with the chinese yuan?

If the dollar falls as gold standard our national banks will sit on mountains of toilet paper with nothing left to back up our debts as securities. Shit's gonna end up way worse than just in an american depression.

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u/huzaa 1d ago

Also, one thing people might not realize, is that when all outside actors really starts to fear that the USD is really getting devalued, they will have no incentive to hold it. They will have to dump it back to the US. What would all the world's dollar returning back at once to the US do? Hyperinflation. I think it can happen very quickly and it's a self perpetuating cycle.

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u/medium1080 1d ago

People seem still to think that this is just some little episode before we return back to normal but i highly doubt that. The world will change. In what way? I don't know. But it won't stay the same

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u/doddyoldtinyhands 1d ago

Because Putin told him so.

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u/rp-Ubermensch 1d ago

God damn it I get paid in USD and just now noticed USD to my currency is nose diving, same work for less pay.

Why would Biden do this?

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u/More-Needleworker-93 1d ago

Americans probably be like: Our Number bigger, We better 🦅🇺🇸💸

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u/Narcuterie 1d ago

👊🇺🇲🔥

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u/Kladderadingsda Europe 1d ago

Raaaa! 🇲🇾🦆

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u/My_leg_still_hurt92 1d ago

US stuff get cheaper to import and EU stuff more expensive to export

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u/nameproposalssuck 19h ago

The tariffs pretty much every country will impose to retaliate the Trump tariffs will be much higher than the ~5% devaluated USD...

If you want to export your goods and service, imposing ridiculous tariffs on the rest of the world (excluding Russia & Belarus) is not a winning strategy.

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u/Cristopia 7h ago

My economics teacher told me it's vice versa, if you have a weaker currency than many others, your exported products will actually be more attractive, since they're cheaper. But, with the tariffs, this concept is annuled, and, since imports are in turn more expensive, it's even more difficult for americans to buy cheaper products.

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u/GamerlingJvR 1d ago

And the American ppl will lose Things now and the elon musks can buy it for cheap and own everything. It's a Win win win.

Oh... wait...

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u/newnet07 1d ago

American here - this seems to be the concept people everywhere do not understand. The Great Depression was made worse because of the tarriffs that countries enacted in attempt to backstop their own domestic economies amidst a slow down. When a country devalues its currency, their populace loses purchasing power. This thereby hurts manufacturers dependent on a significant source of income from consumers in that country, creating a negative feedback loop.

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u/Boggl3r 1d ago

But I don't wanna buy anything "Made in USA" anymore ...

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u/Primrose_Polaris 1d ago

A lot of other (smaller) countries in the world de facto use USD as their main currency as well, so products from those countries will be cheaper for us, too.

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u/My_leg_still_hurt92 1d ago

Our products will be more expensive for them.

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u/aesibri 1d ago

Ecuador

El Salvador

Panama

Zimbabwe

Micronesia (Federated States of Micronesia)

Palau

Marshall Islands

East Timor (Timor-Leste)

Etc

Oh no how will we survive without exports to El Salvador.

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u/Narpity 1d ago

The Argentine Peso is also tied to the US dollar and they have a good amount of mineral resources and have a trade agreement with the EU

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u/Big_Standard1081 21h ago

Saudi Arabia also

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u/OsloProject 1d ago

Maldives

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u/Glad-Belt7956 1d ago

You're right, but mom said we can have a little selfishness as a treat.

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u/ConspicuousPineapple 1d ago

That's not selfishness though. They will buy less of our products, which hurts us as well.

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u/Glad-Belt7956 1d ago

Damn you and your correct logic conspicouspineapple.

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u/superschmunk 1d ago

Yeah. I canceled my west coast trip in September. I don’t want to support this shit show.

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u/Open_Bait 1d ago

I never wanted tho. The very best "made in USA" things are made in taiwan and china anyway

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u/o-o- 1d ago

Maybe there's a connection... =)

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u/SnooWoofers6634 1d ago

Wait until it's $9,11

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u/Tobi_DarkKnight 20h ago

I knew someone would make a 9/11 joke.

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u/nephilim80 1d ago

Laughed way more than i should

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u/cakedayonthe29th Germany 1d ago

That's actually bad for our exports...

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u/gezofelewaxu6753 1d ago

EU is a net importer so it's overall better

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u/Fleeting_Dopamine 1d ago

The US will become another China for us. We can buy our cheap electronics there. They want to move to an extraction and simple manufacturing economy, like China used to be :)

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u/LastRedshirt 1d ago

And yet, there are other countries ...

Ranking of Germany's trading partners in Foreign Trade
Year 2024 *

|| || |Rank|Exports| | | | | | | |Country of destination|in 1 000 Euro| | | | | |001|United States|161 433 895| |002|France|115 411 718| |003|Netherlands|109 239 213| |004|Poland|92 920 521| |005|China|89 947 449| |006|United Kingdom|80 302 755| |007|Italy|80 240 730| |008|Austria|76 315 849| |009|Switzerland|68 015 423| |010|Belgium|58 498 452| |011|Spain|53 632 096|

https://www.destatis.de/EN/Themes/Economy/Foreign-Trade/Tables/order-rank-germany-trading-partners.html

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u/SmileFIN 1d ago

Dang, 240,6 Billion surplus. Nice.

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u/Schrankwand83 17h ago

Why is Russia still on that list

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u/Ashamed-Print1987 1d ago

That's the neat part: we won't be exporting. I'm kidding, it's not neat, but ultimately what it is :(.

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u/Nauris2111 1d ago

We will be exporting, just not to the United States.

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u/[deleted] 1d ago

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u/Spaghetticator 1d ago

I'm really sick of hearing this non-logic. What is the point of exporting if you don't earn anything from it. The only way to get materially rich is to earn in a strong currency and exchange it for goods. Working for worthless paper is a slave's game.

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u/cakedayonthe29th Germany 1d ago

Exporting is a big deal for the EU because it boosts the economy and creates jobs. When EU countries export goods, they earn foreign currency, which helps buy imports and keeps the economy stable. Plus, exports often lead to a trade surplus, adding to the EU's overall wealth. Accessing larger markets through exports drives innovation and makes businesses more competitive. It also diversifies the economy, reducing risks from domestic market fluctuations. Moreover, strong exports support the Euro's value, making imports cheaper and enhancing purchasing power. Overall, exporting strengthens the EU's global influence and technological edge, contributing to a robust and resilient economy.

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u/Spaghetticator 1d ago

if it's all about (lower class) jobs you're just abusing monetary policy to achieve wealth distribution. I mean I understand the attraction to some people: neoliberals love having their cake (pretending to do pure capitalism) and eating it too (the stability of a supported lower class), but it's hypocrite AF to do all that while pretending to abhor socialism which would just cut out the unnecessary steps from the process.

A strong currency boosts investment-based industries by pulling in yield chasing foreign wealth, by the way, so you just get less of that for every job you save by stimulating exports. Again this is a matter of distribution - who wins, who loses in society - and people prefer to hand it to the lower classes employed in exporting traditional industries over handing it to the entrepreneurs and educated people in domestic investment. Socialism focuses on this tension directly but its not "allowed", so we abuse currency exchange rates for it...

In the longer run that investment can even lead to new export industries, so you're doubly decapitating your toes by foregoing it.

"Moreover, strong exports support the Euro's value" - and here you're just getting contradictory. Weaken the Euro to strengthen the Euro and enhance purchasing power... Exports on their own might achieve this but not exports stimulated by a weaker Euro.

Honestly most people fall for this export stimulus logic because they're terrified of change. When a currency strengthens, domestic employment and income shifts between industries and classes. However this is nothing to fear on the face of it and not a reason to sacrifice a currency (and the wealth of a nation) for.

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u/CharlieeStyles 1d ago

Slaves famously did not get any paper.

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u/joca_the_second 1d ago

Look up Dutch Disease.

The causes were different and domestic but it led to the same issue of raising the value of the currency. So we can guess what the consequences of what a too strong a currency can have in an economy.

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u/Cylian91460 1d ago

How? Why?

You need to explain bud

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u/Snicker10101 1d ago edited 1d ago

He is right, usually a stronger currency is better for imports and a weaker one for exports. A stronger currency makes imported goods cheaper, a weaker currency makes a country's exports more competitive by lowering their price in foreign markets

A strong currency is very good cause: attracts Investment, we get higher purchasing power and it lowers inflation

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u/kitnex 1d ago

And it forces companies to keep investing into better products and services to stay competitive instead of simply relying on cheap exchange rates. That’s what Germany did in the decades up to the Euro and Switzerland is still (very successfully) doing. Sudden jumps are tough, but a continuous and slow appreciation of the currency can lead to a very prosperous populace.

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u/cakedayonthe29th Germany 1d ago

Thank you

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u/ChampionshipSalty333 1d ago

Hate to be pedantic about this but people get this wrong all the time. What impacts trade is the 'real' exchange rate and what you can see above is the nominal exchange rate. Without knowing about Price levels, the nominal exchange rate doesn't tell us anything about competitivness

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u/user7532 1d ago

How does strong currency attract investment? I can imagine the outlook of a rising exchange rate attracting investment, but it seems to me that an increase in the exchange rate would discourage foreign investment as the purchasing power is lower for foreigns.

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u/nhansieu1 1d ago

it's trade war with US. Ofc it's gonna be bad for everyone

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u/Equivalent-Garlic-88 1d ago

Those exports aren't gonna be worth shit if the rest of the world is boycotting your shitty products.

If Trump wants isolationism for the USA, the world will happily give it to him.

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u/Lotan_Firemane 1d ago

If you really want to annoy Americans, put a zero at the end of that. It doesn't change it for the Europeans trying to read it, but will mess with Americans. Source - I'm American who likes chaos.

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u/Familiar-Scholar-595 1d ago

1 chf is worth 1.18 usd

1chf is worth 1.06 euro

we are better lol.

(this is so fucking horrible. all three were once worth around the same amount 😭 plus we are hit with higher tarriffs)

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u/Snicker10101 1d ago

funny meme related to this

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u/Trolololol66 1d ago

1 Chf should be more around 0.7 €

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u/chemape876 1d ago

What do you mean by "should be", and why?

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u/W1NGM4N13 1d ago edited 1d ago

I remember when 1 euro was 1.5 chf lol.

I don't think the tariffs will matter to us since our biggest export to the USA is pharmaceuticals which have very inelastic demand. Almost everything else we export are luxury goods like watches and I don't think its going to matter that the 100k rolex is now 131k.

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u/Zeviex 1d ago

Hell it might actually help…

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u/ConspicuousPineapple 1d ago

You're right about demand, but what about competition?

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u/FantasticUserman 1d ago

Have you seen the fucking market?

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u/BelgianWaffleWizard 1d ago

Yea, I just bought vegetables and a fried chicken at the market. Looked great.

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u/Wrong-Ad7649 1d ago

Lol

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u/Kajetus06 1d ago

Polish złoty also went up relative to dollar

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u/Jericho5589 1d ago

Hi guys, I'm American. Can I come live with you guys for awhile. Things are going not v good over here and voting doesn't seem to be doing anything for me

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u/TheLaughingBread 15h ago

Sure move. We take anyone with a brain

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u/Ham_Drengen_Der 1d ago

I really wish i shorted Tesla stock 4 months ago

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u/ChaosKeeshond 1d ago

I did, and was so happy when I got out... until the stock crashed even lower than I could have ever imagined it would after I closed my position.

I'm still kicking myself.

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u/ChadiusTheMighty 1d ago

Man and imagine you had bought bitcoin in 2011. Or in 2016. Or in 2020 when you told yourself you really should buy some

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u/jonydevidson 1d ago

That's a mindset that'll get you to 0 quicker than you think.

Set your personal goal and don't look past it. You couldn't have predicted it going lower.

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u/LadyofmyCats 20h ago

I unironically belief the Euro is becomming the next international reserve currency.

China does a lot, to stop their currency from becoming it and the euro is already the one in a lot of countries. And the dollar…

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u/butwhywedothis 1d ago

Make EUR the new global currency.

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u/El_Chara 1d ago

It actually deserves to be a global currency way more it's literally made to encourage trading across nations

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u/flashpacktrack 1d ago

People who get paid in usd and living in EU 🥲

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u/My_leg_still_hurt92 1d ago

A strong Euro make products exported to the US more expensive, stuff exported from the US to EU cheaper.

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u/Apprehensive-Neck-12 1d ago

British pound is like 1.30

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u/MechAegis 1d ago

even gold is better then the USD

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u/brunckle 1d ago

We are so back! Let's go to the states, get held up by ICE and the TSA in customs, and get deported to El Salvador 💅🏻👊🏻

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u/thatonetallkid4444 1d ago

The euro has almost always been worth more than the dollar except between December 1999 and December of 2002. It also peaked at US$1.60 in 2008. So this isn't anything new.

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u/Difficult-Court9522 1d ago

I remember when it was 1.2

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u/Francl27 1d ago

Too bad you really don't want to go to the US to take advantage of it lol

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u/jared__ 1d ago

RIP freelancing in the US while working from EU though.

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u/Puzzled-Parsley-1863 1d ago

europe back on the world stage? what continent will they scramble for this time?

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u/RedshirtBlueshirt97 1d ago

Its gonna be the middle east or Africa again

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u/SchemeShoddy4528 1d ago

worst part about living in the US is you're rent free in everyones heads CONSTANTLY, everyone speaks your language and talks about you non stop and constantly compares them selves to you.

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u/Dependent-Head-8307 1d ago

10% tarifs turn into 10% devaluation if the dollar. Which means that tariffs became an extra tax for the Americans.

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u/MrLemon91 1d ago

When 5mil US Dollar for gold visa will be worth 5 euros?

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u/HiHallo123456 1d ago

MASSIVVEEEEE W

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u/yotraxx 1d ago

Euro € is the new refuge !! Come to daddy investors ! 😘

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u/SolarFlare0119 1d ago

Living in Germany for the last five years I don’t remember the dollar ever being worth more than the euro. In fact I feel like it jumped around a lot.

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u/TrekkeurGnostique 1d ago

Stonk

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u/Karpfador 1d ago

Yet we still get prices that are 1:1 for everything, ripping us off with games for example

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u/Morgentau7 1d ago

I wish Sony Eriksson wouldn’t have lost the phone war back then

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u/EnvironmentalSpirit2 1d ago

5090s still cost 5000€

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u/js21geo 1d ago

Make it 1,110 and the american might explode

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u/Kernon_Saurfang 1d ago

time to change global currency from USD to EUR

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u/Em1ngh 1d ago

I don’t care as I won’t go to the US anytime soon

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u/HistoricalExample889 1d ago

No way 😄

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u/AbeRego 1d ago

Hasn't it been around this level for a while? I'm planning a trip, and it was close to this last month

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u/Big_Pair_75 1d ago

It’ll be funny when their economy collapses to the point that it will be cheaper to buy certain (strictly necessary) American goods than before the tariffs started.

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u/Pyrrus_1 1d ago

Afaik there has been a rally effect around the euro due to tariffs, which Is good, but historically afaik the euro has Always been slightly higher than the dollar.

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u/exessmirror 1d ago

Call me when it's back at 1.21 per dollar like a decade ago.

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u/JFSOCC 1d ago

I remember 1.62

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u/politicsranting 1d ago

Are you accepting people under political asylum from America? Please?

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u/Redragontoughstreet 1d ago

Canadian here. Can we come too? Take us with you!

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u/madrid987 1d ago

europe=gigachad

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u/Recent-City-8001 9h ago

Please Mr President It's too much winning I can't take it no more!!

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u/IT_Nerd_Forever 1d ago

That looks good on first sight, only. It's good for America's exports on first sight, but imports for America will become even more expensive. American companies who need goods and ressources from other countries, will have to pay more. This means prices will rise. Products which are bound to $ (oil) will become more expensive, too.

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u/vlatkovr 1d ago

I see you are at Trump level economics knowledge

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u/[deleted] 1d ago edited 1d ago

[deleted]

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u/angry-asol 1d ago

Liq Dollar get crypto hell fucking yea

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u/poundofcake 1d ago

My upcoming trip to the US has been made that much more affordable.

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u/El_Chara 1d ago

Good luck, hope el salvador goes well for ya (genuinely just don't go there it's a very bad idea)

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