All this is very fascinating. I recall my first semester lessons in college. "Macroeconomics". We were discussing the Hicks modell, multiplicators and the liquidity trap. The "savings equals investments" formula. Discussing how long the US would "make it" given the savings. Basic things. So long ago it seems.
It seems, nowadys, people ("the US government") don't even see a liquidity trap when they're right in it.

The simple things, 1) people can only invest what other save for a rainy day, 2) you need to save to consume.

So very basic, well the lootings will be over, the best thing for the planet and it people is a collapsing dollar.

Time to celebrate! (Even if it takes a little longer)

I'm actually very happy at least the German government in the end has drawn the right conclusion. That's: "Don't put any more money into that bottomless pit". Wait for the collapse and do what is needed and possible afterwards.

Whoever still has dollars, it would be wise not to have that many in future.

logos, how long until the Euro collapses because the Germans finally get totally pee'd off with the Spanish, Greeks and Irish and withdraw from it?

Sorry gomiki, I just hijacked your thread.

We must wait for the Europeans to retaliate by debasing the euro. Don't hold your breath. The exhaling monkeys running Washington have speeded up the printing presses. It's all a game. The news gets more preposterous by the day.

>long until the Euro collapses
A lot later, unfortunately withdrawing from it by the "problem childs" would make it stronger. But they won't withdraw anyway, just go bancrupt. Your € are "save" for now, at least after the collapse of the USD. 20% inflation in Euroland, I'd bet on it, but better than the alternative.

(Don't read the Daily Telegraph, those reports are paid for by people with certain interests)

And Germans won't withdraw. We lost the war, remember

hetismij, Please don't be sorry (for the hijack). I think the comments are very interesting! I would love to hear more.

gomiki, you might be interested to know that all this mess was anticipated almost 20 years ago. Given US savings, capital imports and the policies of the administration this (collapse) which is coming was the ONLY possible outcome.

"Common knowledge with the profs at colleague".
It's a huge experiment and politicians act just like expected.

"bubble gum"

sigh...

Gresham's law says bad money drives out good. Same applies to behavior.

Betting on currency fluctuations is a fool's game. Too many variables.

People on this forum often tout getting euros from ATMs when you are in country, as the "exchange rate" charged is a putative commercial rate (wholesale). That "strategy" doesn't work so well when the euro is rising against the dollar. I bought euros last week to use two weeks from now. Who knows whether that move will be a good "investment," though I have them in hand and don't need to ask a machine for mine. And, I can purchase the services of tax dodgers at a significant discout with my cash.

On the other hand- Your going to Paris! How many times have you gone to Europe when the dollar was strong. It all evens out in the end.
Enjoy.

Today the dollar has moved to $1.35 for euros. I go April 22 to Rome. All of my hotels and budgeting were based on $1.25-1.30 range. I also have another trip in October, a Viking River cruise. I might not have booked it if I thought he prices were going to become so much more expensive for everything associated with this trip. Just when I thought it was safe and affordable to travel back to Europe...Timothy Geithner needs to be fired.

Susie,

Things are crazy right now. By October we could be 1.60 or 1.10, my guess is we will be in the 1.20s by summer

For Canadians it is between 1.60 and 1.65 so be thankful!

t2l2..Yikes!

travel2live,

I think Canadians should be thankful anyone accepts their currency.

Geithner, the US Secretary of the Treasury, may deserve to be fired, but not because some don't like the current exchange rate, i.e., the price of the euro in dollars, which shouldn't be tinkered with (fixed) to make travel to europe more affordable.

That price reflects many years of meddling by politicians who buy votes instead of following sound economic policies, and the collective view of the wisdom of the economic initiatives of the new administration.

If you want certainty in your travel plans buy your currency today. You will know the price, though you may suffer buyer's remorse if the price of a euro falls before you use your supply. And, holding euros has a cost as well: the opportunity cost of not using the money elsewhere (interest foregone), along with the risk that the exchange rate may move unfavorably against your "bet."

Enjoy Paris.

Bon voyage!

Follow the DAVE policy of currency conversion.

If I am planning a trip to Europe, the dollar exchange rate will be very good.

If I am leaving for Europe, it will be very bad.

Once I leave Europe, the rate will return to good for the dollar.

For a small fee, I'll tell you what I am doing. The fee will vary as to what I may be considering at that moment in time. Normal fee rate will be 15% of your vacation cost. Please forward in pesos.



dave

Hey Dave,

I don't need to hire you, as the same thing happens to me.

The one time I bought foreign currency, expecting the usual Summertime fall in the USD, it kept rising.

Last July, when gas was $4.00 a gallon, my husband and I flew to Denver, packed up our daughter's things and put them in a rented Penske truck and a Jeep, and drove out across Wyoming, Nevada and Utah (all very big states) to California. Gas has never been that high before or since.

We then flew to Scotland and spent two weeks exchanging two dollars for every pound.

When we got home, we pre-ordered our heating oil for the year. I won't tell you how much we paid.

At some point this fall, I figured out how much money we would have saved if we had moved our daughter in September, flown to Scotland in November, and forgotten to send in our oil prepayment (which is what we did the year before, when prices were rising).

Forget Dave and Ira; I'll tell you what I'm planning and you can send your money to me.

Lots of people are figuring out that they should have forgotten to buy stocks in their 401k and just take the easy 50% match