“New” At the Dollar Store

8 Replies to ““New” At the Dollar Store”

1. L – Yes, but the better measure would be how is it doing against the Russian rouble ?

   The collapse of the European Union, European NATO, the Gangrene political cache´and the
   W.E.F. , be as, if a flood of disasters will wash away the corruption. Will it take:
   40 days? (Then build an Ark),
   40 years?(Then re-discover a moral compass).
   400 years?(Then endure a long period of slavery, until the Exodus)

   1. A big BINGO to Larry ….. the euros are nucking futs these days and they started from a base of being BATSHIT crazy before veering in the nucking futs lane.

      However since they are playing chicken with Vlad while in a state of nucking futs I worry for the security of the world.
      Smarter folks screwed it up twice in the last century and this latest crew is still convinced GLO-BULL warming is the big danger to us all.

   2. No, there’s no liquidity when you sell the Ruble. Except for maybe inside Russia and there’s limits to that. You won’t get the official exchange rate outside of Russia. Even Belarus won’t honor it. For a while Russians we’re making money going to Belarus, buy Rubles, then go to Russia to sell them

      1. It doesn’t matter if the Ruble has no liquidity as long as it is required to purchase Russian commodities. This gives the Russians access to foreign currency. It doesn’t even matter if the Russians can’t get their hands on the USD. They can buy US products through intermediary countries. Putin has thought this through and the Americans have not, or just don’t care. Until Europe, China and India all stop buying Russian commodities the war in Ukraine could go as long as enough concrete remains to be bombed.

      2. You DO realise the “official exchange rate” is, in fact, a market quote, right? Do you know how currency forwards work? Have you been a liquidity professional in a major bank? If so, curious where you think the EUR/RUB rate is being generated?

         I’d believe your claim more readily if you could provide at least some active OTC margin rates for forwards, and swaps? Those will be vol driven, which will often be reflected as wide spreads and significants gaps.

         1. Sorry, replying to AllanS there …

2. Jeebers! Considering just how poorly the Dollar seems to be doing, having the Euro drop below par is pretty amazing (and a bit scary).

3. And I’ll add a question… Although the “official” inflation rate in Europe is lower than in the USA, the fact that the Euro has dropped below par on the Dollar seems to indicate that you might add another 10% (or maybe a lot more) to that inflation rate. Do I have that right?