One Euro = One USD

[errolanderson]

A 20-year low for the Euro as investors scramble toward the U.S. dollar as safe-haven buying. Gold RIP, deflation’s appetizer . . . .

[Rareearth]

Just like crypto’s

Digital currency yes, im not sold on crypto’s yet

[TOM4CWB]

About time. EU in middle of a nasty war... about to be frozen out this winter... these folks can't fight there way out of a wet paper bag!!!

[sumdumguy]

They will all be looking to US to save them. No use looking to Canada because Trudeau hates the oil producing provinces.

[Austrian Economics]

Bank of Canada raised its benchmark rate by a full percentage this morning.

Quite unexpected.

This is gonna hurt.

[Kraut]

Just like crypto’s

Digital currency yes, im not sold on crypto’s yet

Crypto is meant to be traded, not horded or seen as an investment. I sold 99% of my holdings last Dec and am easing some cash back in to dollar cost average in the last 2 weeks. Then be ready to sell again at the drop of a hat.

[LEP]

Bank of Canada raised its benchmark rate by a full percentage this morning.

Quite unexpected.

This is gonna hurt.

When they wait too long to raise rates they have to over compensate.

Incompetence

[Sodbuster]

When they wait too long to raise rates they have to over compensate.

Incompetence

Completely agree and still think they may have to go at least one more percent yet. Rates should never of been allowed to get that low in the first place. Biggest reason for the skyrocketing housing and land prices seen in Canada was 2% mortgages, had we had 6% mortgages we would never of seen this happen.

[shtferbrains]

Seems the Central Banks an governments have hit a SNAFU in their economic planing.

Might be best described as a FUBAR.

Two words that cover the current situation perfectly.

But shouldn't have to use them to describe the world economy.

[Templeboy]

Low rates drove up many asset classes (stock markets, houses and farmland esp). Government spending is what blew up consumer prices, now we are going to pound 2" nail with 5lb hammers to fix it. then its going to take more gov't money to fix in 2 years. There are going to be bankruptcies, foreclosures, and property surrenders and the courts are going to be backed up even further.

[fjlip]

Completely agree and still think they may have to go at least one more percent yet. Rates should never of been allowed to get that low in the first place. Biggest reason for the skyrocketing housing and land prices seen in Canada was 2% mortgages, had we had 6% mortgages we would never of seen this happen.

So…why were rates so low so long?
A fake pandemic and house sales went bananas! Why?

[errolanderson]

So…why were rates so low so long?
A fake pandemic and house sales went bananas! Why?

The piper needs to be paid (economics always rules) . . . . Central banks panicked cutting rates to disguise the imploding debt crisis. This was a can-kicking-bonanza, especially 2020 onward. Now the situation is worse, much, much worse . . . .

[TOM4CWB]

The piper needs to be paid (economics always rules) . . . . Central banks panicked cutting rates to disguise the imploding debt crisis. This was a can-kicking-bonanza, especially 2020 onward. Now the situation is worse, much, much worse . . . .

The 'New Green Deal' multi-trillion $ 'adventure' that the western countries have prematurely kicked into high gear... is exponentially adding to the pandemic economic confusion . Then Putin piled on... knowing he can get away with murder.. this side of accountable life beyond our true destiny.

This has all been foretold thousands of years ago... truly amazing watching the great final act take shape!!!

Blessings and Salutations!

[FarmJunkie]

The piper needs to be paid (economics always rules) . . . . Central banks panicked cutting rates to disguise the imploding debt crisis. This was a can-kicking-bonanza, especially 2020 onward. Now the situation is worse, much, much worse . . . .

This problem started in 2008 Errol. They could have fixed a lot of things back then instead of bailing companies out. But the baby boomers needed to have their assets appreciate one more time. Now we are ****arooed. There shud always be some hurt along the way to make u appreciate your progress. This time its gonna kill alot of good businesses and people along the way because the right decisions weren’t made prior to this fiasco.

[sumdumguy]

Classic Macro Economics will rule : The ball got rolling real fast with the low interest rates and money-printing following 2008. Politics over-ruled the “invisible hand” and caused these over-blown prices. If the marketplace had been left to deal with 2008 untethered, there would have been some casualties but GM, the banks and the Eastern unsustainable manufacturing industries were at-risk an no-way could they be allowed to fail. Now the politicians can’t put a lid on inflation - and they’re surprised. In Macro, we were taught that there are two ways to control inflation: interest rates and taxes (maybe war taxes). Which hammer will they use or do they have something else up their sleeve?? Macro profs must be having so much fun with this conundrum. IMHO - Interest rates would have to go a whole lot higher to maintain 2% inflation and I don’t think the marketplace can stomach the pain so we can only hope it doesn’t get too crazy.