One Euro Is Now Worth One Dollar, Leading To A Flood Of Memes
The U.S. dollar and euro, which was first implemented back at the start of 1999, are worth the same amount for the first time in 20 years.
On the one hand, this means that if you’re in the United States and you’re planning to buy a product or take a vacation in Europe, now is a great time to do it. On the other hand, it is a very bad sign for the European economy and for the world economy overall.
Like the dollar (and other currencies) the euro has faced increasing inflation. Before Russia's invasion of Ukraine in late February, 1 EUR was worth $1.12 USD. The currency has steeply declined since then, as the world economy drifts further into bear market territory and concerns over the price and availability of energy haunt Europe and the U.S.
Most blame the euro’s “lowkey falling off” on geopolitical worries. Currently, the Nordstream pipeline, which brings Russian gas to Europe, is on a 10-day maintenance pause, but many fear that it will shut off indefinitely.
Already, many European countries (in response to the war in Ukraine) have either chosen to import less Russian gas (and face the economic consequences) or had Moscow limit the amount of gas it ships them. Because of policy choices made over the years that tie European energy supplies to Russia, gas is Putin’s main source of leverage over Europe — if the Russian gas stops flowing, countries like Germany will need to ration gas and shut down parts of their economy.
The euro’s decrease in value shows that many in the markets think something bad like this will happen. Since the economy is globally connected, the consequences will be felt everywhere.
As investors dumped the euro for the dollar, memers marked the important moment. It seemed to be a proud day for Americans and for the transatlantic alliance.
Cryptocurrency enthusiasts also shared their insights about the economy as the "dollar euro parity" discussion trended across social media.
#Euro Holders Actually 📉#inflation #EuroDollar #BITCOIN pic.twitter.com/kji10jkZ06
— Pytha🔰 (@Pytha_x) July 12, 2022
What does #euro-#dollar parity mean for #cryptocurrency ? Even as a European I got used to tracking my holdings in US$. So, today I switched my portfolio-viewer for a moment to euro and suddenly crypto winter seems a bit less harsh. pic.twitter.com/sC4sWDOtUm
— Mala Giore (@MalaGiore) July 6, 2022
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SardonicRainboom
The law of equivalent exchange.
Timey16
Funnily enough the strong Euro to Dollar actually punished us.
You see, businesses were already treating Euro to Dollar 1:1. So games would cost us 60€ when they were $60 in the US… meaning we paid the equivalent of $72, even though our wages are lower on average…
The question is if we will now double be punished by companies raising prices by 20% just cuz.
But yeah Euro is weak for 2 reasons:
1. Germany's energy crisis and as industry motor of Europe it drags the rest down (that said while Germany imported a lot of gas it also reexported a lot e.g. to Austria, so they ALSO have to deal with less gas)
2. The EU bought Russian oil and gas with Euro, giving the Petrodollar some competition. The EU is now buying oil and gas from other sources and pay those in Dollar, decreasing the global demand for Euro and increasing the demand for Dollars.
Bobby G
I served in the U/S. Navy in the Atlantic from around 2006 – 2009. Saw just about every country with a port. Didn't stray too far from the ship when in port, too expensive.
To be clear: a single guy with more disposable income than 2 middle class families, and needed to burn it… couldn't spend it because it was too expensive.
1 to 1.6 was just for bank reference, real exchange was closer to 1 to 2. Port town was another double to triple. So, 1 to 4-6.
A pint from the local tap was like 12 bucks, a plain burger was 20 (they always complained about beef sourcing), bus to go down the street was 5. It was rock concert levels of price gouging, but normalized. And consumables were being subsidized to be stupid cheap. So, a burger was 20, but a plain white shirt was 80.
Stayed on the boat and ended up buying a new Ford Explorer with the cash instead.
Locals always acted slightly insulted that I was there, but that's a whole different kettle that I didn't want. Except Naples, Italy. Those guys and gals rocked. Scotland was cool too.
They held an actual protest on the pier in Oslo, Norway. We had to re-park the ship at the plastic pier, where the sheer number of used condoms had melted into the asphalt to make a massive mosaic.
baldarek
>So games would cost us 60€ when they were $60 in the US… meaning we paid the equivalent of $72, even though our wages are lower on average…
Except in normal countries taxes are already included into the price of a thing. So when you pick a product with a 60€ price tag, you pay 60€ for it at the checkout, but when an American picks a product with a $60 price tag they usually end up paying more than $60 for it. Perhaps it doesn't quite level out, but still.
Timey16
True but not all US states have VAT…
And Canada also has VAT in prices and while CAD and USD were at parity they also had $60 games.
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