Posted on 04/10/2015 4:38:14 AM PDT by SeekAndFind
Americans have long complained that the dollar doesn't buy much anymore. Suddenly, the dollar's problem may be that it buys too much — a change that has huge implications across the global economy for consumers, businesses, investors and governments.
The U.S. currency's value has surged over the last nine months, reaching levels against some world currencies last seen more than a decade ago. In Europe, it now costs just $1.09 to buy one euro, down from $1.37 a year ago and almost $1.50 four years ago.
To put it another way, an American tourist strolling the streets of Paris this April can buy 25% more croissants, cafe au laits or mini Eiffel towers than a year ago with the same dollars.
The greenback's advance has been even more dramatic against some rivals. With its latest rally, one buck buys 30% more Swedish kronor than a year ago, 40% more Brazilian reais and 61% more Russian rubles.
(Excerpt) Read more at latimes.com ...
Being able to buy more devalued foreign fiat <> being able to buy more stuff.
“In Europe, it now costs just $1.09 to buy one euro, down from $1.37 a year ago and almost $1.50 four years ago”.
That’s because the Euro has lost its value. It’s still stable against other world currencies.
Well, some of the kids are going to Europe this summer.
They’re happy with the exchange rate right now.
From what I’ve seen the dollar exchange rate doesn’t appear to save much for the consumer espechially for electronics equipment.
I’m looking to rebuild my PC and the prices for motherboards and memory are still pretty consistent with what they were six months ago.They haven’t dropped that much yet.
Most of that equipment is made in Taiwan or China so there should have been some kind of a price drop,but I’m not seeing it.
The reason the dollar is soaring?
Oil.
Now imagine what would happen if we removed the ridiculous restrictions on domestic drilling and refining ...
Yeah, baby!
Heading to Italia next month...Nice to have a discount on everything this time....
Just hope nothing stupid happens between now and then!
Must be nice. Michelle and the girls may want to visit the Eiffel tower while they are there.
My sister-in-law is going to Italy as a member of a choir and certainly will be saving money.
The unfortunate thing? The strong dollar makes it more expensive for foreign tourists to come to the U.S.
“That’s because the Euro has lost its value. It’s still stable against other world currencies.”
Our biggest trading partner is Canada. Less than five years ago, the US and Canadian dollars were at parity. Now, the US dollar is at a 25% premium over the Canadian dollar; i.e., C$1.25 = US$1.00
Going to Paris for the Air Show in June.
The Exchange rate is literally going to save me a couple of thousand dollars.
Oh no -- everyone has known for over a decade that the dollar is being dumped as a reserve currency by such economic powerhouses as Russia and Iran, and that will result in the total economic collapse of the United States. /s
OPEC Has Already Turned to the Euro
GoldMoney Alert
February 18, 2004
...The source for the euro exchange rate is the Federal Reserve, and I have calculated the euro's average exchange rate to the dollar for each year based on daily data.We can see from column (4) in the above table that in 2001, each barrel of imported crude oil cost $21.40 on average for that year. But by 2003 the average price of a barrel of crude oil had risen 26.0% to $26.97 per barrel. However, the important point is shown in column (6). Note that the price of crude oil in terms of euros is essentially unchanged throughout this 3-year period.
2001
As the dollar has fallen, the dollar price of crude oil has risen. But the euro price of crude oil remains essentially unchanged throughout this 3-year period. It does not seem logical that this result is pure coincidence. It is more likely the result of purposeful design, namely, that OPEC is mindful of the dollar's decline and increases the dollar price of its crude oil by an amount that offsets the loss in purchasing power OPEC's members would otherwise incur. In short, OPEC is protecting its purchasing power as the dollar declines.
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