Best Value for US Dollar
Apr 7th, 2008 | 12:27 AM
#42
Joined: Aug 2007
Posts: 26,778
Likes: 0
<i>It is the bad value of the dollar that is the problem, NOT THE EURO!!!!!</i>
But, the "value" of the dollar remains high in many places, including in the US. To date, there has been no significant increase in inflation in the US, certainly nothing equal to the decline in the value of the dollar relative to the Euro. You are confusing exchange rates with purchasing power. A typical traveller should concentrate on the latter, not the former.
And, I remain convinced that the current situation is temporary. Take a look at the exchange rates since 1999. You will notice that the Euro suffered weakness that was comparable to the dollar's current problems. Yet, amazingly, the Euro recovered. And it recovered despite little improvement in the underlying issues (aging populations, rigid labor markets, significant implied spending committments, etc) in many of the core Euro countries. These things are cyclical.
So, unless you think that the situation is not temporary, then I think these are exactly the sort of questions that should be asked. And, frankly, the answer is "avoid Europe" for a little while. This goes for Europeans as much as it does for Americans. Take the opportunity to visit somewhere other than Italy (or France, or the UK, or...). Eat pizza in Buenos Aires. Or noodles in Bangkok. Or drink wine in California. Visit ancient sites in Egypt. Or Mexico.
Now, if you don't think the decline is temporary, like our friend logos, then you should be avoiding taking vacations altogether and start putting all of your extra cash into commodities futures or precious metals or some other hedge, in an attempt to protect yourself from the inflation that will come.
But, the "value" of the dollar remains high in many places, including in the US. To date, there has been no significant increase in inflation in the US, certainly nothing equal to the decline in the value of the dollar relative to the Euro. You are confusing exchange rates with purchasing power. A typical traveller should concentrate on the latter, not the former.
And, I remain convinced that the current situation is temporary. Take a look at the exchange rates since 1999. You will notice that the Euro suffered weakness that was comparable to the dollar's current problems. Yet, amazingly, the Euro recovered. And it recovered despite little improvement in the underlying issues (aging populations, rigid labor markets, significant implied spending committments, etc) in many of the core Euro countries. These things are cyclical.
So, unless you think that the situation is not temporary, then I think these are exactly the sort of questions that should be asked. And, frankly, the answer is "avoid Europe" for a little while. This goes for Europeans as much as it does for Americans. Take the opportunity to visit somewhere other than Italy (or France, or the UK, or...). Eat pizza in Buenos Aires. Or noodles in Bangkok. Or drink wine in California. Visit ancient sites in Egypt. Or Mexico.
Now, if you don't think the decline is temporary, like our friend logos, then you should be avoiding taking vacations altogether and start putting all of your extra cash into commodities futures or precious metals or some other hedge, in an attempt to protect yourself from the inflation that will come.
Apr 7th, 2008 | 07:57 AM
#43
Joined: Feb 2005
Posts: 9,016
Likes: 0
>in an attempt to protect yourself from the inflation that will come.
Well said!
Nobody is willing to sell to the US, if he's losing money every day. It only works so long. Asian (and european) exporters aren't stupid, the sell their stuff elsewhere.
Well said!
Nobody is willing to sell to the US, if he's losing money every day. It only works so long. Asian (and european) exporters aren't stupid, the sell their stuff elsewhere.
Apr 7th, 2008 | 08:37 AM
#44
Joined: Jan 2003
Posts: 223
Likes: 0
Wow, I find myself in the position of agreeing with NeoPatrick...great minds think alike
I've been to both Romania and Croatia and have posted trip reports on Fodors for both.
Croatia is an amazing destination, on the cheaper side of things, and *definitely* not boring.
Romania is dirt cheap. Your dollar will go far there. It isn't boring either, but I don't think it is nearly as nice as Croatia. Given a choice I would pick Croatia in a heartbeat over Romania.
In all fairness, I will disclose that Romania is the only European country I've been to that I didn't like (I've been to 20+). I *loved* the people, but hated the country. Many others feel differently.
To the OP, we just got back from a trip to Mexico City (again, a trip report has been posted on Fodors). It was far cheaper than anything we've done in Europe and we had a great time. We went as a family, so we did slightly different things than you probably would do, but I would 100% recommend it for anyone wanting to stretch the USD.
If you are set on Europe, then anywhere in Eastern Europe will be cheap. You can do Hungary, Croatia, Slovenia for reasonable prices. Further east will be cheaper.
Kevin
I've been to both Romania and Croatia and have posted trip reports on Fodors for both.
Croatia is an amazing destination, on the cheaper side of things, and *definitely* not boring.
Romania is dirt cheap. Your dollar will go far there. It isn't boring either, but I don't think it is nearly as nice as Croatia. Given a choice I would pick Croatia in a heartbeat over Romania.
In all fairness, I will disclose that Romania is the only European country I've been to that I didn't like (I've been to 20+). I *loved* the people, but hated the country. Many others feel differently.
To the OP, we just got back from a trip to Mexico City (again, a trip report has been posted on Fodors). It was far cheaper than anything we've done in Europe and we had a great time. We went as a family, so we did slightly different things than you probably would do, but I would 100% recommend it for anyone wanting to stretch the USD.
If you are set on Europe, then anywhere in Eastern Europe will be cheap. You can do Hungary, Croatia, Slovenia for reasonable prices. Further east will be cheaper.
Kevin
Apr 7th, 2008 | 12:43 PM
#45
Joined: Mar 2008
Posts: 357
Likes: 0
I've spent some time in Africa over the past couple of years. Prices seemed to be based on the USD, so I've been very well off with a strong £. Travellers are even advised to bring their spending money in USDs. Now might be the time to book that safari, or a trip to Zanzibar or Cape Town.
Apr 8th, 2008 | 08:35 AM
#46
Joined: Jan 2004
Posts: 923
Likes: 0
Christina, I can't speak for anyone but myself. I can tell you that no matter how I "say" it I would never suggest it is the fault of one or the other. I agree that some actually think because the Euro is strong it is the fault of Europe.
I have worked the past 15 years in international business, as an exporter of US manufactured aluminum goods. When the dollar is weak in Europe I am happy to be able to sell so much more to my customers there! In fact up to a certain point because of high duties from the US, the dollar muct be weaker than the Euro for a company to even be able to compete.
Londonres: Back to suject, I agree that certain African countries are also good value travel ideas for US citizens. While in Tanzania most hotels would only take USD for our stays. The Shilling is worthless anywhere but in Tanzania of course.
I have worked the past 15 years in international business, as an exporter of US manufactured aluminum goods. When the dollar is weak in Europe I am happy to be able to sell so much more to my customers there! In fact up to a certain point because of high duties from the US, the dollar muct be weaker than the Euro for a company to even be able to compete.
Londonres: Back to suject, I agree that certain African countries are also good value travel ideas for US citizens. While in Tanzania most hotels would only take USD for our stays. The Shilling is worthless anywhere but in Tanzania of course.
Apr 19th, 2008 | 02:59 AM
#48
Joined: Jun 2006
Posts: 946
Likes: 0
Europe is not really expensive if you do a long stay and live like a native. Housing is crashing here too, so long stay rentals are super cheap and abundant. Rural areas are better than cities of course, for better prices.
BUT, it seems you do not have time for a long stay, so can not benefit from that advantage.
You could still find some bargains in Italy if you decide to explore some more rural, less visited places.Again, live like a native, Italians are not all rich.Get a rental and enjoy the markets and making some of your own food, do lunches out instead of dinners. Walk and use the wonderful mass transit. Enjoy all the things that are free.
I just posted an article from NYT about ways to stretch your dollar, perhaps something there can help.
Turkey is a fabulous destination that most Europeans love, but most Americans miss by false impressions. It is super cheap, gorgeous, more luxurious than much of Europe, more ruins than Italy or Greece and the best hospitality in the world.
Rural Spain is very cheap, but probably too hot in the summer. Croatia and Greece can be cheap. Really, any of the rural areas in most European countries can be cheap, if you stay away from typical tourist places and live simply.
We have been touring Europe for almost 2 years and spend VERY little while living large.
http://www.soultravelers3.com
I would not hold my breath on the dollar going up any time soon.Yes, we notice it more when we travel, but the low value of the dollar affects everything even at home.
On another related area, I would have to disagree politely, but strongly with travelgourmet about the "value" of the dollar.
The dollar has had an 89% decline since 1950!
A dollar in 1950 will buy only 12 cents worth of goods today, 89% less than before -
I think it is a funny joke to say that there is no significant inflation.Read http://www.shadowstats.com/
BUT, it seems you do not have time for a long stay, so can not benefit from that advantage.
You could still find some bargains in Italy if you decide to explore some more rural, less visited places.Again, live like a native, Italians are not all rich.Get a rental and enjoy the markets and making some of your own food, do lunches out instead of dinners. Walk and use the wonderful mass transit. Enjoy all the things that are free.
I just posted an article from NYT about ways to stretch your dollar, perhaps something there can help.
Turkey is a fabulous destination that most Europeans love, but most Americans miss by false impressions. It is super cheap, gorgeous, more luxurious than much of Europe, more ruins than Italy or Greece and the best hospitality in the world.
Rural Spain is very cheap, but probably too hot in the summer. Croatia and Greece can be cheap. Really, any of the rural areas in most European countries can be cheap, if you stay away from typical tourist places and live simply.
We have been touring Europe for almost 2 years and spend VERY little while living large.
http://www.soultravelers3.com
I would not hold my breath on the dollar going up any time soon.Yes, we notice it more when we travel, but the low value of the dollar affects everything even at home.
On another related area, I would have to disagree politely, but strongly with travelgourmet about the "value" of the dollar.
The dollar has had an 89% decline since 1950!
A dollar in 1950 will buy only 12 cents worth of goods today, 89% less than before -
I think it is a funny joke to say that there is no significant inflation.Read http://www.shadowstats.com/
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