Wow thanks for preventing preventing WWIII guys!

  • queermunist she/her@lemmy.ml
    ·
    3 months ago

    The Fed’s recent rate cut also means that the dollar is going to flood Europe even more and displace the euro as the key currency in the region. The eurozone is as good as dead at this point.

    The Euro is kind of fucked. Without currency sovereignty, every country in the EU is forced to cut budgets to keep their revenues and expenses balanced. Aside from exceptional circumstances like the 08' financial crisis, countries aren't able to just inject liquidity to deal with cooling markets. That means there's functionally no difference between European countries using euros or dollars, either way member states don't have control and are subject to the whims of a foreign bank.