The Euro falls below parity with the U.S Dollar. What are the impacts People are Ignoring? Let’s talk about Pre-2019 EU Regulations on Economic Activity First – August 24, 2022,
So on August 23, 2002, the Euro, European Union, the Euro area currency fell below the US dollar. Now, when you read my material, what I want you to understand is how my thought process differs from everyone else’s. Where most people blame central banks, I focus on DEMOCRACY and regulations via the government on economic activity, where many imagine CENTRAL BANKS printing money; I focus on PRIVATE BANKS being the only money printers that matter.
I’ll keep this as short as possible, but the reality of the European Union is that they’re a REGULATIONS NIGHTMARE. The U.S, although a regulations nightmare, is mostly a regulations nightmare for U.S Citizens. Now, don’t think for a moment that I’m trying to make it seem like the European Union is the only current in trouble; no there are a lot of countries whose currencies are in trouble, but it might take a bit longer for them to figure it out, why the European Union is finding the value of the currency debased, is because when MOST government regulations are created, they’re created with the EXPECTATION that there will NEVER be a severe economic downturn.
In regards to money, government deposit insurance is often created, imagining that a currency will NEVER experience hyperinflation. Imagine I bought a 1-ounce silver coin, and I took out a $20,000 line of credit with the bank and then the U.S dollar becomes worthless overnight, but because the fiat currency became worthless, the silver coin just multiplied in value, to the point that one silver coin could pay off my $20,000 debt that I used to accumulate a lot of things while it’s value was high.
However, on the flip side of that argument, a person with $100,000 U.S dollars in the bank lost everything because $100,000 U.S dollars is now worth five 1 ounce coins. What I’m writing here might sound ridiculous, but many parts of Europe have already experienced hyperinflation in their country histories, and one of the reasons a lot o European countries experienced hyperinflation before 1999 was because of their GOVERNMENT’s regulations on economic activity.
Countries like Italy that saw the value of the Italian lira debased were REWARDED for their PRIOR, really dumb, big government ideas when the European Union was formed. Countries like Greece didn’t have to learn from mistakes they made in the past because the European Union and the European central bank would make things better because now Europe was united, so now all of the dumb rules and regulations that bankrupted most EU member states could now function better because well, bigger is better right? 😂
Well, within 22 years, the Euro is now on parity with the U.S dollar, and when I read articles about this, people think it’s not a big deal; okay, fine, but I have to remind the reader, that most EU member states are a regulations NIGHTMARE. I was shocked to learn that the Italians need help from the Chinese to build roads.
On Saturday, President Xi Jinping and the Italian government signed a non-binding agreement for Italy to join China’s trade route and inked a total of 29 deals worth 2.5 billion euros ($2.8 billion) across an array of sectors. Italy hopes the project will boost its sluggish economy but the deal raised more than just eyebrows in Europe and the U.S., with officials criticizing the move.
Italy is a MAJOR player in the EU, and Italy without the EU is what it was under the Lira, a relatively poor European nation. Why was Italy poor under the Lira? Because the Lira was debased to the point that the cost of living SOARED! It was as an example, very difficult for an Italian working for Lira’s to buy anything made in Germany.
Some people like a debased currency because they imagine it helps with trade, but it doesn’t help with trade, debasing your currency helps with PRICE CONTROLS You see, when the government starts to over-regulate the economy, prices get distorted, but lets say the DEMOCRACY argues that they like the government regulations, well then the government has to fix the problem with ending or altering the regulations, and that’s why you’ll see one regulation lead to another regulation, which leads to another regulation, which eventually turns a country into a regulations NIGHTMARE.
Now, let’s not bash all government regulations because, as an example, if someone was building a building without any regulations, that would be terrifying, or if some private business could POLLUTE the waters, that would be unacceptable. There are certain times when people want the government to play a role, but when you start getting into Marxian thinking and you want to Nationalize or over-regulate entire industries just because a group of Left-wingers imagines that some corporate entities are making too much money, well then, that’s where society starts making a far left turn, and that’s where Europe has been heading since 1999.
What made the problem even worse are these covid-19 regulations along with this new war on Fossil fuels, which is beyond stupid. When the people demand REGULATIONS, what they NEVER think about at the time are the SHORTAGES that might come as the result of their new regulations. Now, this is where me and the people who believe that central banks are all-powerful have an issue.
In my opinion, central banks and fiat money exist and are excepted because of the DEMAND for them. I don’t point to the central banks as the root cause of the problem, nor do I point to them as the solution; I argue that DEMOCRACY created the DEMAND for a central bank so that the PEOPLE could have someone other than themselves to blame.
This may irritate you to read, but I advise you to actually listen to people and read their comments, and you’ll notice that a lot of humans want something for NOTHING! Whether you like it or not, there’s a DEMAND for these crazy politicians and their crazy ideas, and this demand has existed dating back to the greeks.
Socrates pointed this out a long time ago, and yes, it sounded elitist, but I argue it was TRUE! I’ll go a step further and say that part of the problem is that we haven’t enhanced our vocabulary to cater to the DEMANDS of people who think more deeply or critically about economic issues. Can we cut the B.S? Is it a stretch to imagine that a lot of voters are STUPID?
Do we really need to make the central banks the boogeyman? If you’re too scared to point out to individuals that democracy has flaws, I get it, but when you start saying silly things like the “government is printing money and that’s why prices are going up” many will argue the government was printing money since Obama and Donald Trump, why are CONSUMER prices only going up now?
The obvious answer is that the regulatory environment has changed, but you’ll notice that most people keep saying that it’s because of government spending, which is like saying there is NOT a shortage problem in certain sectors; there’s only a GREED problem. If I don’t know anything about economics, I will NOT conclude that government regulations are creating shortages; I’ll assume EITHER the government OR the private sector are making the price of things more expensive because of greed and/or corruption.
Now, if you put the focus where it needs to be, which is GOVERNMENT REGULATIONS, the economics of the world becomes more CLEAR! It’s only then that people can CLEARLY see that DEMOCRACY is the problem, and from there, we can seek out a better solution, but all of this central bank boogieman crap needs to stop because I certainly don’t want to live in a world with a Gold Standard that has a bunch of people who will use the government to CONFISCATE my gold and other properties.
Financial education, as well as SECESSION, is very important if we’re to build a better world.
Euro falls below parity with the dollar. What’s the impact? | abcnews
Interesting times ahead!