Euro spirals toward 1:1 parity with USD

Source: Euro at 1:1 with USD

The euro and the dollar are nearly trading one for one, as the EU single currency continues to fall to new depths after the announcement of the ECB’s quantitative easing, the €1.1 trillion bond-buying program launched Monday.

FYI: The Euro has not been at parity with the USD for nearly 15 years so this is news. It means the well oiled propaganda machine propping up the Euro is coming to an end and it will soon approach it's real value as the EU unravels. The Greeks demanding WW2 reparations from Germany once their loan guarantee unraveled was a good indicator of where the EU and the Euro were heading.

a reply to: machineintelligence

So it sounds like it is a good time for Americans to travel to Europe, right?

a reply to: TommyD1966
Except for the fact the Europeans seem to want to import more Islamist into the EU making it more unsafe for Americans to travel there, sure good times will be had by all..

a reply to: TommyD1966

It's even better to go to Canada. Getting back to the old days. US gets about 1.20 C for 1$.

The dollar will continue to get stronger, and stronger but eventually it will supernova and explode.

God help us all.

a reply to: solarstorm

When do you think this will happen, and what will cause it?

From my perspective, it's not possible while we remain the leading superpower, with the dominant military and reserve currency.

From a military standpoint, we are secure at least through 2025, so I think we have at a bare minimum another decade before any real USD currency issues.

a reply to: solarstorm

I think Greek and Spanish debt are bringing down the value of the Euro more than any thing.

originally posted by: solarstorm
The dollar will continue to get stronger, and stronger but eventually it will supernova and explode.

God help us all.

You are right on the money.....Pardon my pun. The dollar will continue to get stronger and stronger. Inflation is the real enemy and it will tear the fabric of this country.


Look around prices are climbing while your wages are not. How long does it take before the bottom incomes reach inflationary boundaries and can not afford food and shelter......1 year....2 years....3 at the most. The Euro will crash 6 moths to 1 year before the dollar. The failure in Europe will be epic with countries demanding bailouts left and right. We will see nationalism rise again the Muslims will be the focal point of this nationalism.

a reply to: pl3bscheese

I'm not so sure about that.

The cause of lost faith in the Euro is due to many countries defaulting on their debt and the EU central bank doing a round of QE. We have done three rounds of QE in this country. The world is going to wake up to the reality of the dollar and the crash in the Euro is going to prompt this.

Military wise we have strong numbers but the world is getting increasingly unstable. WW2 started primarily because of poor monetary policy and the destabilization of the Euro could catapult the world into WW3.

Also the Russian Ruble is rapidly declining because of the oil crisis. Putin just slashed his salary 10 percent in an effort to gain additional support from his people. Who do you think putin is going to blame for their situation?

OPEC and their American buddies. I'd be surprised if the Dollar and Euro make it past 2020.

a reply to: asmall89

I'm not seeing any valid reasoning for why the US would lose reserve status. You list other currencies in decline. This does not influence the USD negatively. If USD are dumped, in what currency would people flee to? If goods are traded in USD, backed by the might of the military, how is this to change anytime soon?

WW3 makes no sense. It's in nobodies interest to pull that trigger. The benefits do not outweigh the risks. I've heard this same thing that the USD will fall for the last 15 years. What you see, if anything, is a decline relative to the rise of other nations. Everything is weighed against everything else. Where will the scales tip towards? Who will rise? The only superpower which holds a chance is China, and they are way behind from a military standpoint. Not to mention it makes no damned sense for them to risk a WW3 before 2025.

Not happening.

a reply to: machineintelligence

Damn. Its nuts. My family lost alot of money thanks to this. I wish the Euro never came into being. So many people lost so much.

a reply to: machineintelligence

Thats BS.

The entire financial system we use in the west is to blame. Spains currency lost about a third of its value by converting to the euro. We were told we would get that back. It never happened. Our salaries went down and living costs went up thanks to the EU shutting down much of our industries to favor other countries. We then borrowed like everyone else to stay afloat and compete where we could.

France and germany just borrowed less. Thats why they can curb the inevitable by collecting interest.

Without the EU, they would be just as screwed...maybe more since they spend more than they take in. Much more than Spain and others combined.

If the peseta was still around we would be a stable economy like we were before this crap fest that is the EU.

reminds me of this saturday night live skit the not so incredible adventures of the down and out u.s dollar

we're back!!!!! lol but for how long? as time goes by there will be highs and lows, just keep your heads up

a reply to: tadaman
Not saying it is Spain at fault. Just saying the deals made have been bad. Spain is not Greece. The problems lie with some pretty crappy deals with the central banks in my opinion.

originally posted by: pl3bscheese
a reply to: asmall89

I'm not seeing any valid reasoning for why the US would lose reserve status. You list other currencies in decline. This does not influence the USD negatively. If USD are dumped, in what currency would people flee to? If goods are traded in USD, backed by the might of the military, how is this to change anytime soon?

WW3 makes no sense. It's in nobodies interest to pull that trigger. The benefits do not outweigh the risks. I've heard this same thing that the USD will fall for the last 15 years. What you see, if anything, is a decline relative to the rise of other nations. Everything is weighed against everything else. Where will the scales tip towards? Who will rise? The only superpower which holds a chance is China, and they are way behind from a military standpoint. Not to mention it makes no damned sense for them to risk a WW3 before 2025.

Not happening.

This is the sentiment many had about the collapse of the real estate market before the crash of 08. "The real estate bubble is such a small part of the economy it's collapse wont effect the rest of the markets". That was proven wrong.

China and Russia are already making attempts to move away from the dollar by calling for a world currency, building up gold reserves and buying oil with gold. The collapse in a big currency such as the Euro will have a dramatic effect on the dollar. It's possible that countries affected by this may wake up and say it's not fair to measure our currency and goods in dollars and thus move away from doing so.

As to what currency/country will rise. I don't know and to honest I don't think any would. Goods may end up being traded in a vast array of currencies, as they should, or perhaps even commodities such as gold and silver. The issue is this isn't just a collapse in a currency or a few currencies... what is happening is a global economic crisis on scale with the collapse of Rome and the Late Bronze Age.

I'm not trying to be a doom and gloomer but I like looking for patterns and trends and I see a correlation between Rome and the American Empire. Over expansion and over consumption naturally lead to economic crisis and collapse. 0% Interest rates for 6 years and 3 rounds of QE? C'mon this has fail written all over it.

WW 3 may seem like a stretch but I don't think anyone should underestimate what countries will do when their resources are stretched thin. It may not even be a nuclear war, or at least at first. Both WW 2 and WW 1 were extremely destructive and tell me, what was gained? The fact was it was all about resources and money and countries such as Germany went to extreme lengths to ensure their the stabilization of their economic power. Perhaps that's the length America will go too, to ensure the stabilization of the Dollar?

originally posted by: charlyv
a reply to: TommyD1966

It's even better to go to Canada. Getting back to the old days. US gets about 1.20 C for 1$.

Bumped my own post because, Gaud.. Just checked todays rate and it is 1.28C for 1$.

Irving would probably give ya 1.30 !

With gas relatively cheap and this, I can justify a trip to a few meteor craters up there I always wanted to see.

One thing I was thinking recently. Whenever there is economic calamity, collapse, what have you, the fact is there is still the same amount of money around. What we see as downturn is actually the massive accumulation of that money in the hands of a select few. Its not like the money is dissapearing, it's going somewhere. It is all owed to somebody. And often I think they are intentionally manipulating the market or causing these crashes specifically so they can gather more of the money, and then use it to buy up all the businesses that are going under at rock bottom prices, as well as real estate, etc.

a reply to: pexx421

Agree absolutely. And, they have been doing this on continuous cycles long before this. Capitalism at it's finest. It is the engine that keeps it all moving. The worse thing, actually, is if that stopped. No pain, no gain.

a reply to: machineintelligence

I'm curious why no one has mentioned the Euro being backed by the USD via the IMF?

I'd have guessed the Yuan crashing before the Euro, but the low oil prices have saved China's economy, at least for now.

Does it really matter which currency goes first? They're all interconnected. One goes, they all go.

Where my Rolaids.....

So....this seems like an ideal time for something HUGE to happen in the UK that would damage the pound, create a level playing field of 1:1:1 for the pound, euro and dollar and then BAM! One currency the world over.

The "Blib-blob" perhaps.