Euro worth the same as the dollar

Renegade Mechanic · 08-04-2015 03:36PM

Quantitive Easing. In layman terms if you desperately need money to repay a bank loan and you have a van for sale, that's been for sale for a while because the engine is knocking, making it effectively useless to any prospective buyer, you just print a load of money so you can buy the van off yourself and pay your bank.. Make sure you run a country/economic region though, or you might to jail.

Simple!

Fr_Dougal · 08-04-2015 03:44PM

Renegade Mechanic wrote: »

Quantitive Easing. In layman terms if you desperately need money to repay a bank loan and you have a van for sale, that's been for sale for a while because the engine is knocking, making it effectively useless to any prospective buyer, you just print a load of money so you can buy the van off yourself and pay your bank.. Make sure you run a country/economic region though, or you might to jail.

Simple!

What year is the van you're selling and how bad in the knock?

jimgoose · 08-04-2015 03:47PM

Fr_Dougal wrote: »

What year is the van you're selling and how bad in the knock?

Yeah, if it's a Transit then sod the knock, hoof a 400-inch Cleveland V8 in there and go dragging 'Felty Audis. :cool:

Egginacup · 08-04-2015 03:48PM

Polo_Mint wrote: »

IS this not good for Ireland's exports?

It probably would be if we exported more than we imported.

We get the same amount of euros for our exports but we have to shell out more euros for the same amount of shit we import.

Generic Dreadhead · 08-04-2015 03:49PM

Was the angry face really necessary in the thread title? :pac:

smash · 08-04-2015 03:52PM

Polo_Mint wrote: »

IS this not good for Ireland's exports?

If oil rises and the Euro stays down just imagine how much we'll pay at the pump. Then imagine how much we'll pay for everything else because the costs of production and transport for most goods will go up. Shipping potatoes and beef abroad for an extra few pence isn't going to cut it...

al22 · 08-04-2015 03:56PM

Beause it is nearly the same piece of paper and no difference to print Euro or Dollar image on the same piece of paper. :-)

Renegade Mechanic · 08-04-2015 04:02PM

smash wrote: »

If oil rises and the Euro stays down just imagine how much we'll pay at the pump. Then imagine how much we'll pay for everything else because the costs of production and transport for most goods will go up. Shipping potatoes and beef abroad for an extra few pence isn't going to cut it...

Exactly. Oil is rising in price again, the currency it's sold in is strengthening and the currency we're using to buy that currency is weakening. People have no idea just how easily we could end up paying well over €2.50 per liter. And everything else that follows such prices.

Renegade Mechanic · 08-04-2015 04:03PM

Fr_Dougal wrote: »

What year is the van you're selling and how bad in the knock?

98 Master and you'd actually want your seatbelt on you as the vibration could throw you out of it..

Outkast_IRE · 08-04-2015 04:05PM

sugarman wrote: »

Just buy from Amazon.de, es, fr etc.. No loss in exchange rates.

Its odd some of the items i am looking at seem to be either pegged to the UK price anyway or slightly cheaper. I would imagine amazon probably try to keep pricing relatively level across their EU stores.

smash · 08-04-2015 04:06PM

Renegade Mechanic wrote: »

Exactly. Oil is rising in price again, the currency it's sold in is strengthening and the currency we're using to buy that currency is weakening. People have no idea just how easily we could end up paying well over €2.50 per liter. And everything else that follows such prices.

The only saving grace right now, and it's temporary, is that OPEC won't jump in with a price rise because their low prices are wiping out the shale oil companies in the states who can't compete.

darkpagandeath · 08-04-2015 04:11PM

Renegade Mechanic wrote: »

Exactly. Oil is rising in price again, the currency it's sold in is strengthening and the currency we're using to buy that currency is weakening. People have no idea just how easily we could end up paying well over €2.50 per liter. And everything else that follows such prices.

But we are the fastest growing economy in the EZ :pac::pac:

Renegade Mechanic · 08-04-2015 04:12PM

smash wrote: »

The only saving grace right now, and it's temporary, is that OPEC won't jump in with a price rise because their low prices are wiping out the shale oil companies in the states who can't compete.

True. And I'm wondering what effect Iran will have on the global price when their sanctions start lifting. Will they tow the opec line or sell what they can..

Opec amuse me. Fair enough, why they do it and all, but they should be more interested in sharing their market more instead of trying to flood the competition out. They quite literally can't do it forever. (And another "certain player" doesn't look like its about to collapse like last time, either..)

Renegade Mechanic · 08-04-2015 04:16PM

darkpagandeath wrote: »

But we are the fastest growing economy in the EZ :pac::pac:

The "Leganza" was the fastest accelerating car in Daewoos production lineup

Maximus Alexander · 08-04-2015 04:22PM

Renegade Mechanic wrote: »

They quite literally can't do it forever.

They kinda can. The idea that we're going to run out of oil is dead and buried. We've enough to burn until we blacken the skies and murder ourselves.

kjl · 08-04-2015 04:25PM

It's simple really,

they are printing more euro so there is more in circulation but it doesn't change value of total amount of worth of all the money, it just means there is more of it hence 1 unit of that currency is not as strong as it was. Imagine if all the euro in the world was €100. Now imagine an item that costs €1 and that same item cost $1.20. If they printed another €20, what has changed, the item is still the same except it now 20% cheaper to buy it with the euro that it is with the dollar if the rate stays the same then the dollar is losing out, so it adjusts itself. But then the guy selling the item says, hey wait a minute, my item is now cheaper even though it didn't change value in any way, so he put the price up to €1.20 so now it cost €1.20 which in turn makes it work the same as the original dollar price.

As for the reason, well they are deliberately doing it is to increase trade in the eurozone, because the item is now cheaper for the american to buy in europe than it is in america, but now america is worse off because they just gave us their money instead of keeping it their own country ergo we get richer.

Renegade Mechanic · 08-04-2015 04:27PM

Maximus Alexander wrote: »

They kinda can. The idea that we're going to run out of oil is dead and buried. We've enough to burn until we blacken the skies and murder ourselves.

I dunno... The entire BP oil spill was large enough to fuel the world for about an hour and fifteen minutes...

That kind of consumption has to be way faster than the earths ability to replace it.

Maximus Alexander · 08-04-2015 04:54PM

Renegade Mechanic wrote: »

I dunno... The entire BP oil spill was large enough to fuel the world for about an hour and fifteen minutes...

That kind of consumption has to be way faster than the earths ability to replace it.

Of course, the Earth isn't going to replenish it any time soon, but the amount already available is so vast that there is no danger of it becoming scarce in near to medium term.

There's a decent article about it here. (Lots more out there too

)

darkpagandeath · 08-04-2015 04:55PM

Maximus Alexander wrote: »

Of course, the Earth isn't going to replenish it any time soon, but the amount already available is so vast that there is no danger of it becoming scarce in near to medium term.

There's a decent article about it here. (Lots more out there too )

The 40/50 years scare did wonder for prices though did it not :pac:

Knex* · 08-04-2015 05:14PM

kjl wrote: »

It's simple really,

Alright Knexy boy, have a read. Educate yourself.

kjl wrote: »

Imagine if all the euro in the world was €100. Now imagine an item that costs €1 and that same item cost $1.20. If they printed another €20, what has changed, the item is still the same except it now 20% cheaper to buy it with the euro that it is with the dollar if the rate stays the same then the dollar is losing out, so it adjusts itself. But then the guy selling the item says, hey wait a minute, my item is now cheaper even though it didn't change value in any way, so he put the price up to €1.20 so now it cost €1.20 which in turn makes it work the same as the original dollar price.

Nope.

Renegade Mechanic · 08-04-2015 06:42PM

Maximus Alexander wrote: »

Of course, the Earth isn't going to replenish it any time soon, but the amount already available is so vast that there is no danger of it becoming scarce in near to medium term.

There's a decent article about it here. (Lots more out there too )

I assure you I know

Price is dictated by the owners and speculators, little else.
I have a few problems with that article, one of which is the declaration that ocean drilling is pointless. I'm sure at some stage in Earths life, much of the ocean floor was home to land life and forestry? And they mention that engineers are trying to find a way to stop the steel melting at the temperatures they're getting, at the depths they're drilling to. That's "arse of the barrel" levels of difficulty.

You spend a barrel of oil, in energy, in Saudi Arabia and you'll get twenty five back. Spend a barrel in the Canadian tar sands and youll only get five. In the heavier hydraulic fracturing exercises, that drops to about three...

It doesn't matter what's there if there isn't enough of a return to make it worth extracting. Absolutely, money talks and as long as you're paid enough, you can use twice as much energy as you get back, but there's going to come a time when it's just too difficult to extract and too expensive for Joe Soap to avail fully from.

smash · 08-04-2015 06:50PM

BBJBIG wrote: »

Well ... when I were young - I preferred to play Doctors and Nurses with me cousin ... and used to get her to take her Undies off so that I could inspect her Gash .... :cool:

Did she have a purdy mouth?

Duffy the Vampire Slayer · 08-04-2015 07:23PM

The drop in oil prices has rightly ****ed the peso. Apparently oil is now Colombia's biggest export, a less consistently profitable product than the old reliable of cocaine.

darkpagandeath · 08-04-2015 07:25PM

Duffy the Vampire Slayer wrote: »

The drop in oil prices has rightly ****ed the peso. Apparently oil is now Colombia's biggest export, a less consistently profitable product than the old reliable of cocaine.

Think it's in OPEC interests to kill off or buy up smaller suppliers so they can keep a tighter control of the price. Keeping the prices low atm that they can absorb btw.

Harry Palmr · 08-04-2015 07:31PM

darkpagandeath wrote: »

But we are the fastest growing economy in the EZ :pac::pac:

Pity its not Germany, then the euro might be worth something. Still cheap currency is good for their economy now of course.

KomradeBishop · 08-04-2015 07:40PM

The Euro is so weak, because QE has put a ton of money in the hands of banks/financial institutions, and that money has flooded into the foreign exchange market, causing an increase in supply and dropping demand for the Euro, and causing its value compared to other currencies, to reduce due to supply and demand.

If we put the money to productive use, by actually spending it to employ people and grow the economy - rather than just (effectively, through QE's effect on asset prices) pissing gobloads of cash at the wealthy and finance industry - if we spent it productively, we could actually solve our economic problems and wouldn't be relying on devaluation and increased exports.

Money printing to benefit finance and the wealthy = 'Good', apparently.
Money printing to benefit the rest of the economy and the average person = 'Bad', 'evil', 'impossible', 'hyperinflation!', "shure you can't be serious".

KomradeBishop · 08-04-2015 07:46PM

Polo_Mint wrote: »

IS this not good for Ireland's exports?

Not really, because by devaluing the Euro, we have just made Europe's trading partners less competitive - which means that as economic conditions worsen around the world, there will be increasing 'currency wars', where different countries/currencies try to outcompete each other with devaluations - effectively neutralizing the benefits of devaluing altogether.

It's not sustainable as a means of recovery, and it's going to do pretty much fúck all to aid long-term recovery - it will just help us to avoid deflation for maybe a year and a bit, before it bites.

KomradeBishop · 08-04-2015 07:52PM

kjl wrote: »

It's simple really,

they are printing more euro so there is more in circulation but it doesn't change value of total amount of worth of all the money, it just means there is more of it hence 1 unit of that currency is not as strong as it was. Imagine if all the euro in the world was €100. Now imagine an item that costs €1 and that same item cost $1.20. If they printed another €20, what has changed, the item is still the same except it now 20% cheaper to buy it with the euro that it is with the dollar if the rate stays the same then the dollar is losing out, so it adjusts itself. But then the guy selling the item says, hey wait a minute, my item is now cheaper even though it didn't change value in any way, so he put the price up to €1.20 so now it cost €1.20 which in turn makes it work the same as the original dollar price.

As for the reason, well they are deliberately doing it is to increase trade in the eurozone, because the item is now cheaper for the american to buy in europe than it is in america, but now america is worse off because they just gave us their money instead of keeping it their own country ergo we get richer.

That's actually not how it works, because it's not the act of printing money that devalues a currency, it's what you do with the printed money that determines how much devaluation you get.

If you put the money into something productive, and actually increase employment and production in the economy - thus growing the economy - then the money doesn't have to cause much of a change in valuation.

So, when you print a ton of money, the value of the currency does not reduce in perfect proportion to how much you print - that depends on how much of an oversupply of money, ends up on the foreign exchange market, and how much demand for the currency changes, on that market.

KomradeBishop · 08-04-2015 07:55PM

Maximus Alexander wrote: »

Of course, the Earth isn't going to replenish it any time soon, but the amount already available is so vast that there is no danger of it becoming scarce in near to medium term.

There's a decent article about it here. (Lots more out there too )

The world is running out of easy to extract oil, and over time will rely more and more upon reserves of oil that take a lot more effort to extract - thus increasing the cost of oil quite a lot.

So, cheap oil will not last forever - and one part of the reason it is so cheap now, is because of the worldwide economic downturn (and the reduction in demand for oil, caused by that).

PARlance · 08-04-2015 07:59PM

Getting a good laugh at all these "it's because of QE" posts.

It's far more complex than that. And fwiw, the Yanks have been QE'ing away for some time now.

Euro worth the same as the dollar

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