Commentary
The European Central Bank should be hugely concerned about two pieces of news. The euro is on the verge of parity with the U.S. dollar and has accumulated a drop of 17 percent since 2021, more than 35 percent since 2008. On the other hand, inflation in the eurozone reached 8.6 percent in June, 5 percent excluding the energy and food components. Inflation in more than six eurozone countries, including Spain, is already in double digits with the core Consumer Price Index (CPI) at multi-decade highs.
Meanwhile, in Switzerland, June inflation was 3.4 percent with the core at 1.9 percent. Switzerland relies on imports for gas, commodities, and supply chains as much as its neighbors, but it hasn’t engaged in massive printing of its currency….