FlyerTalk Forums - View Single Post - Is the plunging u.s. dollars becoming a problem for your travelling experiences?
Old Dec 7, 2006, 9:01 pm
  #49  
Starscream
 
Join Date: Dec 2006
Programs: NWA, Star Alliance, RBC Avion
Posts: 11
I couldn't tell you within 5 percent what the US equivalent of the last beer I had in the UK or wine I had in France.

To those predicting a continued USD retreat, what makes you think the world can afford the US economy to lose purchasing power? If spreads get too wide, current account balances will change dramatically, the USD would become more attractive to foreign investors therby pumping the dollar up. No matter how many yen Russia buys, the USD is still the currency. If the USD gets too low, what do you think the states and the IMF would do with their gold, dump it and buy green. Most emerging economies rely on exports to the states. Just my humble opinion, but I don't think many currency valuation rules that apply to most FX relationships necessarily apply to the USD. Of course that is only in today's world. The stronger India and China become, and the more other countries hold euros or yen in reserves, the more the dollar becomes a pure currency, rather than a commodity, a currency, and a vehicle. The dollar might slide/stay depressed for a couple of years but I'd be surprised if it is drastic or sustained.

Paying more for something always sucks. But if I want it, an exchange rate won't stop me.
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