Dollar buying ever less of world's goods

[rodeodance]

Source: csm




Dollar buying ever less of world's goods

By Ron Scherer, Staff writer of The Christian Science Monitor Mon May 21, 4:00 AM ET

New York - ............

Overseas, the change is already forcing Europeans to adapt. In Torri, Italy, Il Colombaio Bed and Breakfast, which is nestled at the edge of a walled medieval village in Tuscany, used to be filled with Americans – more than 90 percent of guests. But this year, only a handful have come – less than 5 percent.

"It's amazing," says Sumito Barabara Viale, who has run the B&B for nine years. "It dropped because of the euro. It's so expensive to come here now."

Hoteliers, shopkeepers, and restaurateurs across Tuscany are experiencing a similar dearth of American tourists, Ms. Viale says. They've been replaced by English, German, and even other Italian visitors. The change first became apparent after 9/11, when many Americans opted to vacation closer to home. After recovering a little, the number of American tourists began to drop steadily as the euro gained strength against the dollar.

Travelers say their higher expenses are not just due to exchange rates. Lily Blitstein, who is planning a trip to London to visit her fiancé, recounts her search for affordable airfares. "Prices jumped $200 in 10 days' time," she says. "I guess it's the price of fuel and everything else."



Read more: http://news.yahoo.com/s/csm/20070521/ts_csm/aeuro;_ylt=AqZnf5z8ddJRbfuB8GyiW0zMWM0F

[peacebuzzard]

1. Americans are moving back to the US from out of country lifestyles.

I have co-workers who have lived in France, Italy, South America and have commuted to their U.S. jobs for quite sometime. Most have moved back to the U.S. because the dollar is just sinking like a rock against the foreign currencies.

My disabled sister who lives out of country because of the better maintenance care, has her expenses inflating rapidly because of the sinking dollar.

On the other hand, if foreign tourists can obtain the proper visas, the U.S. is a great and very cheap destination. The "Disneyworlds" must be doing great business.

[indypaul]

7. How can this happen?

Didn't Cheney tell us that deficits don't matter?

[NastyDiaper]

2. Boomers will just borrow more, Our children will pay it back.

Not.

[thunder rising]

3. This is what happens when wealth is centralized

Now only a few can go abroad. But they would not think of staying at common hotels.

[pecwae]

4. The reason we canceled

a trip to Switzerland & Austria this year. We were going to stay at a couple of working farms in Austria, but had to do two overnights in Zurich because of flight scheduling. We kept an eye on the dollar and finally decided to forget the trip and pay the flight cancellation fee. It was going way over what we had budgeted in our December planning.

[ohio2007]

5. It's a depressing situation the world has to deal with

they'll have to slash their prices to get Americans back or search new markets for people with such vast quantities of disposable income.

or
go out of buisness.

[cliss]

6. Thanks for posting this.

I've already sent the link to a few friends.

Prediction: the US $ dollar is going to go further down, WAY down. The Treasury department wants it to happen.

Result = Importers will be priced out of their business.
Exporters will make a ton of money, selling our products overseas.

[ohio2007]

9. Those are the advantages of a weak dollar

American made goods could also gain a foothold selling in america and not just the auto industry,
for example, the copier/printer/fax profit margins are razor thin.
"Buy American" could be good for Americans.I could see american manufacturers regaining a larger share of the office products needed to do business in the world and competing with "the knockoffs" here and abroad.
Those who earned a living pushing foreign products in the US may be able to expand to take in moremade in the USA products.

Maybe we will get more European/Pacific rim tourists into our Bed-n-Breakfast cottage industries.

[On the Road]

8. Air Prices Have Doubled Since a Year or Two Ago

both from oil and exchange.

I travel with my daughter once a year, and we were going to go to Greece or Eastern Europe this summer. Instead, airfare was $1200-1500 per person. I have always been able to find cheap bucket shop fares, but not this year.

Amazingly enough, we're going to China instead. Was able to get tickets from Baltimore to Shanghai in July for $1140 -- still pricy but excellent for this year. And other expenses are a fraction of what they would be in Europe.

[TheMadMonk]

10. Something else. Keeping Americans at home, reduces their exposure to reality.

Ignorant. Manipulable. Compliant.