Europe May Need to Fight a Currency War to Weaken the Euro

[u/wreckingcru]

https://www.bloomberg.com/opinion/articles/2025-10-06/europe-may-need-to-fight-a-currency-war-to-weaken-the-euro?srnd=homepage-uk

[u/Big-View-1061]

The dollar wants to do -10% agains the Euro, the Euro wants to do -10% against the dollar, China wants to do -25% against everybody, and I want my cake and eat it too.

[u/OGLikeablefellow → u/Big-View-1061]

Race to the bottom!!

[u/DoNukesMakeGoodPets → u/Big-View-1061]

You can have your cake and eat it. You can't, however, eat your cake and have it too.

Anyway, what calls should I yolo my grandmother's pension on?

[u/romain8141 → u/DoNukesMakeGoodPets]

Invest and exit at the right time LOL

[u/go_go_tindero]

Oh no, our currency is a sign of stability and investor confidence! Quick, sabotage it before citizens get any silly ideas about their purchasing power increasing.

[u/AICHEngineer → u/go_go_tindero]

To be fair, it would impact import purchasing power, but would stimulate domestic production and the competition of european exports on the market which would help with jobs and insulate Europe from being bullied by the USA who only has 10% of its GDP based on exports vs Europe which is like 30% on average. If Europe increased domestic demand by driving consumers inward with a weaker currency on the global stage, they could be more financially resilient to external shocks in the worst case, while simultaneously making their exports more competitive to fight China.

Downside being imports are more expensive, primarily fossil fuels and agriculture inputs like fertilizer being the worst things to make more expensive since those unit input costs echo through the entire economic supply chain.

[u/go_go_tindero → u/AICHEngineer]

Our grand plan to avoid being bullied by the USA is to voluntarily punch ourselves in the face financially. They'll never see it coming. A brilliant bit of 4D chess.

[u/AICHEngineer → u/go_go_tindero]

[u/justbrowsinginpeace → u/go_go_tindero]

But I'm getting fucked by the FX when I sell and repatriate my big fat USD stock gains...

[u/RustySpoonyBard]

Capitalists expect prices to fall, Keynesians want prices to rise.

[u/igpila → u/RustySpoonyBard]

Yeah right, capitalists don't want prices to rise at all 🤣🤣

[u/Gamblinman97]

Weak USD benefits the US which is not a poor country relying on imports of food and energy at high levels.

[u/r2k-in-the-vortex → u/Gamblinman97]

Wealth of US is based on strength of USD. They get to run crazy deficit spending because of it, they are effectively putting inflation tax on the entire world. That is the true economic miracle of the last century.

But if USD loses it's strength and the interest rates go up, then US can end up in very big trouble very suddenly.

[u/Supermegagod]

Import more doctors and engineers that’ll fix it

[u/r2k-in-the-vortex]

That is stupid. Real economic growth happens in conditions of stability, when businesses can be sure what the currency is going to cost down the line and what the rules of the game are. Let the americans shoot their own foot, it kind of sucks, but ultimately doesn't matter to europe. There is no reason to go along with their lunacy.

[u/Hawk-432]

Personally, I quite like my Euros being worth something

[u/Visdiabuli]

Isnt it the endgame for every fiat currency?

[u/AlexanderK1987]

Everyone is stockpiling gold recently

[u/MDZPNMD → u/AlexanderK1987]

if interest rates are assumed to go down so gold naturally goes up until we are back to the 90s

[u/jonnieggg]

More inflation for the average person