(Updated: Originally posted December 10, 2006)
Americans will be howling when this drop in the dollar hits 'em after Christmas.
And it is worse now!
"With dollar tanking, Americans visiting Europe feel the pinch" by John Ward Anderson/Washington Post December 10, 2006
PARIS -- It didn't take long for sticker shock to hit Allan and Christine Britton.
Twenty minutes after arriving in Paris for a brief layover between the United States and South Africa, they were standing at the foot of the Eiffel Tower, checking out the menu at the Jules Verne Restaurant: sea bass, $78; filet of beef, $77; lobster, $106; dessert, $25; $9 soda; $5 espresso; $30 taxi ride; dinner for four at a pizza joint: $100; and $6.65 for a can of Coke.
The greenback is taking one of its worst beatings ever in Europe, with high US trade and budget deficits, low personal savings, the burst of the US housing bubble, and threats of a recession driving down the value of the dollar overseas.
Many analysts think the drubbing is going to get worse, with some warning that the dollar's value against the euro could fall... if Asian governments and developing countries get spooked by continuing declines and decide to sell off their huge dollar reserves.
Philippe d'Arvisenet, chief economist at BNP Paribas in Paris:
"If they abandon the dollar, it could cause a global recession, and the dollar could go through the floor. It would be counterproductive for everyone. So we rule this out. But maybe we're wrong."
The dollar is doing even worse against the [British] pound, down about 15 percent this year.... a paperback book was the astounding price of 13 pounds, or about $25.60."
How do you like those prices -- coming soon to a store near you!
