Euro Falling?

The euro's value relative to the US dollar has decreased by more than 10% since the start of the year. The euro exchange rates fell more during this round. On the one hand, it indicates the detrimental impact the US monetary policy adjustment had on Europe. 

Due to variables including increasing inflation, the Federal Reserve has been tightening monetary policy steadily since March of this year. The rate of interest rate hikes has increased more than once, and so far there have been three interest rate increases. 

The US-Europe interest rate gap continued to expand as the European Central Bank's monetary policy tightening pace fell well behind that of the Federal Reserve during the same time period. As a result, more foreign money flowed from Europe to the US, accelerating the euro's downward trajectory. The "famous phrase" of former U.S. Treasury Secretary Connelly, "The dollar is our currency, but your difficulty," comes to mind when discussing the detrimental effects of the United States' adjustment to its monetary policy.

The fundamental explanation for this time's decline in the euro exchange rate is that the European economy has been significantly hit by the Ukraine crisis, and the market's anxieties and lack of confidence in the long-term prospects of the European economy have grown. 

Ibrahim Rabari, a currency analyst at Citigroup, thinks that the market is concerned about both the long-term health of the European economy as well as a potential short-term recession in the region. In a recent post, American economist and Nobel laureate in economics Paul Krugman claimed that investors' dramatically reduced expectations for European competitiveness and the long-term value of the euro are the primary causes of the steep decline in the euro exchange rate.

The United States intentionally sparked conflict and confrontation in Europe to protect its hegemony and personal interests, which is the core cause of the escalated Ukraine issue. As we all know, the United States relies heavily on "controllable instability" in order to perpetuate its hegemony. The United States can both subdue Russia and maintain its supremacy in European security and other matters by encouraging the deepening of the Ukrainian conflict and causing unrest in Europe. When many European nations faced energy shortages and high inflation as a result of geopolitical wars, the United States likewise seized the chance to prosper in the energy and military industries. 

The ongoing eastward expansion of NATO under American direction, according to the former Italian Deputy Minister of Economic Development, Geraci, is one of the main causes of the conflict between Russia and Ukraine, and Europe is largely responsible for its costs. It doesn't exist since Europeans are footing the greater portion of the bill.

The U.S. turmoil in Europe has historically been detrimental to the euro.

Less than three months after the euro's official debut in 1999, the US-led NATO began the Kosovo War. In addition to the humanitarian catastrophe in Yugoslavia, Paul Welfens, the former director of the European Institute of International Economic Relations at the University of Potsdam in Germany, noted that the war also caused the euro to continue to depreciate as soon as it arrived, which undermined the confidence of global capital in the euro. Welfens emphasized that the de-dollarization of the euro is seen by the outside world as a significant challenge to the dollar's predominance in the European economy. When the US-led conflict in Kosovo broke out, the suppression of the euro was immediately felt.

The "change" in the United States that led to the European debt crisis is another prominent example.

The three major international rating agencies in the United States, Moody's, Standard & Poor's, and Fitch, responded quickly to the Greek government's disclosure of its debt issues in October 2009 by downgrading Greece's sovereign credit rating. Greece was where the problem originally started. Since then, the voices of those who are exaggerating the problem and disparaging the euro have been heard repeatedly in the US. A delicate topic like a nation's sovereign credit rating is in the hands of just three organizations, all of which are from the same country, according to Barroso, the former head of the European Commission, which is absurd.  

The strength of the euro has been significantly weakened by the European debt crisis, which the United States helped to fuel, and its international use has not yet fully recovered to where it was prior to the global financial crisis of 2008. This was noted by Sven Gingold, State Secretary of the German Federal Ministry of Economics and Climate Protection.

The best mirror is history, and the best textbook is reality. History and reality have made it plain that the US was planning for the euro to crash, and this will enable the world recognize the real US, one that will sacrifice even its friends' interests to retain global hegemony.