I remember a story - back around 2000 when the dollar was much stronger - Amercians in Italy were just spending money like mad - having huge meals, numerous bottles of wine, buying things left and right. With a stronger currency I tend to spread (spend) the money around a lot more than when weak. Not only have I curtailed my spending in the US because of the gloomy economic forecast but also when abroad.

As for the white house influencing the fed - during the Clinton years Greenspan met with Clinton once a month - while during the Bush administration, Greenspan and Bernacke have met with Dubya and Cheney 4 times a month. Do I suspect the White House is influencing economic policy - yes.

All I know is this is very bad timing. Just as I start to embark on my plan to work 3 months and travel for 3 months. It really is beginning to make me think I might not swing it. Even the bare bones tiny studio apartments in Paris are now as much as the mortgage on my big house in Georgia. Luckily I can eat and drink some of the time in my friend's cafe. I have literally been tossing and turning due to the spiral downward. I am very thankful for all the travel I have done and will never regret one euro spent traveling no matter what.

gg

We are doing a 13 day trip out of Rome in April. The strength of the Euro against the dollar is painful for us. I'm sure we won't buy quite as much, but our real cutback will be that we will have to wait longer for our next trip. I have 70 Euro saved from a trip 2 years ago, and I sure wish I'd have bought more.

This is a problem Australians have experienced for many years now. The exchange rate 1.64 to the Aussie dollar. And still Australians continue to travel to Europe. My best tip is to stay in self catering apartments - you can save a fortune catering for yourself, and still eat out occasionally.

Hi travelme, regarding tickets for South America check with wholesalers. I buy my tickets at Vista South America
www.vistasouth.com (with the Chief Sales Person who is a woman)
and get good prices. Of course there are other wholesalers.
What I mean shop around.
I am glad you enjoy going there and that I had been of some help in some postings. Good luck.

Just saw the Swiss Franc and the US dollar are 1:1. I've been watching this exchange rate closely over the past 20 years and I've NEVER seen it this low. The closest was 1.10.

I'm going to the States this summer so it's good news for me!

I am going to Bermuda this summer which isn't cheap for eating out at all but at least the their dollar is pegged to ours. We do self catering there and found an apart for 130 a night with a pool. Coming from the North East, the prices in Bermuda aren't that outrageous.
I do have my heart set on Portugal at some point but that wont happen until the dollar improves. Go Hillary or Obama!

You're premature...USD and CHF are not quite at par yet...according to oanda at 0644 EDT 10/03/08, USD = 1.028 CHF....

But give it time....pretty soon thanks to an economic policy that is destroying the economy, perhaps the USD will soon be on par with JPY!

Keep it up guys.

I think the US$ is going great-guns at the moment! As an Aussie, I have long suffered unfavourable exchange rates, in addition to expensive long-haul flights to Europe.

The Aussie dollar is currently about $1.07 to the US$. A few years back it was over $1.40. It's also up against the Pound at $2.17, compared to over $2.70 when I went to the UK about 7 years ago.

I've decided to go to the US this time, but not because of the exchange rate - that's just a bonus. The main thing that prompted me to go was finding cheap airfares saving about AU$700 flying Jetstar via Hawaii.

Affordable travel can be about smart planning. My friend and I are travelling to the US in August (peak summer) and paying a total $2291 including taxes to travel:
- Adelaide-Sydney-Hawaii-Los Angeles
- LA-Vegas
- Vegas-Boston
- Boston-DC
- DC-NYC
- NYC-LA
- LA-Hawaii
- Hawaii-Sydney-Adelaide

Normally, it can cost about $2300 just to fly to the US (or Europe) return. Another friend from work is going to the US in May (not peak season) and visiting the same number of destinations as I (swap Boston and DC for SF and Memphis) and she is paying around $4000 for her airfares. I don't think I'd be going for that price.

Australian home loan rates are now starting to hit 9% and have been steadily climbing.

I agree with you speckles, for once the rates are in our favour so there may be many more Aussies around Europe this year. To those fortunate Americans who are able to travel regularly to Europe count your blessings , for the average Australian at the cost of $25000 for a family of four for a month in Europe, this is one trip of a lifetime!!! (and thats still with good exchange rates, self catering apartments and limited shopping)

Now the only way that I could go to Europe would be to go on a tour(heaven forbid). From time to time I receive offers from a local travel agent that specializes in Italy. The meals, at least two per day, are included. I might consider this as an option to visit lets say, Sicily. Tours really aren't my thing but it might be an option for some of you.

travelme...

Question..have you ever been on a tour? I have read some great (and also not so great) things about tours in Italy and the rest of Europe for that matter...you might be pleasantly surprised...(we went on a tour of Italy called Italy Bellissimo and it was fantastic...food was great...there were plenty of included things...the optional dinners and tours were fantastic...the tour director was great and there was plent of free time! I feel I did quite a bit more than I could have done on my own at a far better price but as you said tours might not be for everybody.