Economists say that the euro is falling. Since currencies are no more measured in gold terms but in comparison to other currencies, they mean that the euro is depreciating compared to the dollar.
It cannot be explained by Greece, which gross domestic product represents 1,9% of the euro area GDP (242 out of 12750 billion dollars in 2013): even the total closing down of Greek economy would not reduce Eurozone economy by more than 2%. It cannot be explained by rumors of intended projects of “quantitative easing” (money printing), in comparison to a dollar that did see a real active policy multiplying its monetary base by five (+400%) since 2008, representing a doubling of the monetary base every three years: it is almost impossible to print enough euros to match the amount of dollars printed in the last six years, let alone increasing the euro monetary base faster than the dollar one. In other terms, every year there are much more dollars in circulation for each euro than the year before. It cannot be explained by a possible future deflation that would not strike the USA less than the Eurozone. None of these explanations presented by economists can justify a serious loss of value ot the euro against the dollar, and when studied carefully they would rather advocate for a devaluation of the dollar against the euro. All arithmetical data are in favor of the euro compared to the dollar.
The only explanation is the strong renewed anti-euro propaganda waged by the USA, which will increase in the next two months, in order to deflect attention from the USA declaration of insolvability, total loss of debt-control and giving up on any restraint, that will (discreetly) come in March, by the definitive lifting of their famous “debt ceiling”.
If the euro goes further down against the dollar, it will not be for economic reasons but for political ones: the incapacity (or the lack of will) of European authorities to explain real figures and fight back the communication war. Because it is a war, as the one against Russia, that destroys more goods than the French bombing of Libya in 2011. And this war will intensify.
The statements, views and opinions expressed in this column are solely those of the author and do not necessarily represent those of Oceania Saker.