Ladies and Gentlemen,
Lately I am doing some serious thinking that, our "friends" (the Americans), had promised to hamper the continuation of the Dollar collapse. The result? Well....and there we go again! Today...the 22nd. of October the exchange rate of the Euro against the USD is.....1.42629 !!! Ho,ho,ho,ho!! Merry Christmas everyone... Don't laugh yet though. In peanut butter and jelley speaking, that means that all the European exporting goods are losing major grounds globally !!! Imagine the cost of the importer...For instance, if a company in the United Arab Emirates, is importing Greek oranges since 2005 at a rate of, $17per ton (p/t) (December 2005 rate was 1Euro=1.18USD), today this importer is facing an enormous dillema. Is he going to continue importing Greek oranges for a new rate of $20.6p/t (Rate 1Euro=1.43USD), or is he going to prefer importing oranges from Lebanon at a rate of $17 p/t and of equal quality? And that is only the beginning. Besides oranges we have to refer to many other goods such as, automobiles, wood, fruits, vegetables, olive oil, steel, water, cement etc. The only positive aspect of that terrible monetary state, is that the Euro currency is stiff enough, therefore it absorbs all the turbulance from the crude oil global raise. Please do consider that, oil reserves are going to face a severe shortage after 2016 in the UAE, Kuwait and KSA. But after all, believe me it is my pleasure to let you do the aftermath all by yourselves. Ciao :)
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2 comments:
Very correct thinking! That's why the EU states have to consider seriously of closing all borders, since all products besides tech goods are made in EU !
It is very difficult to stand independently in the EU. Great Britain is the primary collaborator of the USA and USA will gain enormous share of the global tourism since the dollar is collapsing. Unfortunately, vacations in all Med islands are not affordable anymore. Once again USA is making something out of this collapse. At list they are losing something.....the Malibu villas.......
Petros...
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