Euro-Dollar Relationship and Changes in the Euro Essay

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With the itching economic climate, unstable Euro currency affects people across the spheres of the economy. As part of the contagion risk, Euro instability is threatening to reverse stimulus gains across the globe. Many countries are becoming victims of the unpredictable currency exchange rate. A good percentage of Eurozone risk can be attributed to CDS markets which are spreading at an alarming rate (Sercu 143). Thus, insignificant diversification is prominent for meaningful investments in European territory. Reflectively, the effects of the swings in Euro currency don’t spare bystanders. Rather, it results in weak growth incapable of supporting policy implementation (“The Euro Changeover and Its Effects on Price Transparency and Inflation” 11).

When trade rules are compromised, the chance that discretion may take over, especially in territories using Euro currency, and result in regime uncertainty which in the recent past has prolonged the depression era in America is imminent. The same situation is true in Europe and foreign parties trading in the Euro currency (Sercu 98).

None of the pre-Euro schools of thought has survived the test of time. Labor and capital mobility, alongside decreased dominance and political stability, remains an unreliable tool for reversing harmful market reactions. At the start of its creation, the Euro currency was oversold, and currency integration alongside the dollar in America has remained to be a visible challenge (“The euros’ trade effects” 09). Shawn Cater, better known as Jzee, is a business mogul who owns an established business empire called Rockefeller foundation. Despite being associated with an Illuminati movement perceived to be the force conspiring to break up the world economic system, he is still respected by peers and other business personalities for his outstanding business acumen. In the video for the song, 99 Problem, he is driving around New York City while displaying the Euro currency and seems to be criticizing the dollar. Over time Euro currency has remained stable as compared to the dollar. Since most of Jzee’s business empire is established in America, it is ironic to point out that everything is okay. Thus, artistically, Jzee appreciates the influence of the dollar on the economy of America though he acts tough as expected of his music genre. Directly, the unstable dollar vs. Euro relationship affects the music, textile, and import industries in America associated with the Rockefeller Foundation.

The tea party is a populist American outfit associated with libertarian and conservative inclinations on political and economic policy implementation and functionality. As a movement, this association has a direct influence on the political future of America and policies debated and passed by congress. Specifically, resounding interests surround the influence of foreign currency on the dollar as a protectionist assembly of tools for mass influence. This community perceives themselves as true Americans who would do anything to protect and reaffirm the constitutional founding upon which their nation was laid by the statement. The tea party movement consists of members drawn from all professional fields. Directly, the instability of the dollar against the Euro currency has penetrated the American economy. Thus, their influence in the economy is slowly but steadily fading with the invasion of the Euro (“The Real Effects of the Euro: Evidence from Corporate Investments” 07). At present, despite the policies passed in an attempt to stabilize the dollar, depression has remained persistent alongside super inflationary circumstances. America is losing on the foreign trade exchange, especially in Euro currency economies (“The myth of contagion is catching”13). The import trade has become very expensive as the export counterpart loses stability ground (Sercu 43).

Due to the persistent inflation, the trigger might have to do with a single meal of dog food from the local stores per week. The trigger will have to be contented with the leftovers from the family meal as the tough economic times reorganize the family budget. The price of dog food in the local stores has hit the highest mark ever recorded.

In summary, the tea party dilemma is the greatest as the influence of the Euro currency is affecting the entire export trade earnings. This is followed by the Rockefeller label losing foreign business opportunities as a result of the unbearable business operation cost. However, the effect on Trigger is short-lived. Besides, the family can share a meal with their dog without feeling any pinch.

Works Cited

Sercu, Piet. International Finance: Theory into Practice. New Jersey: Princeton University Press, 2011. Print.

“The Euro Changeover and Its Effects on Price Transparency and Inflation.” InterScience.Wiley.com, n.d. Web. 2011.

“The euros’ trade effects.” Dollar.Et.org, n.d. Web. 2011

“The myth of contagion is catching.”CobdenCentre.org, n.d. Web. 2011

“The Real Effects of the Euro: Evidence from Corporate Investments.” Et.Eentre.org, n.d. Web. 2011

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