The dollar has fallen, and medicine cannot help him!
I look back with nostalgia to the days when the dollar equaled 1.35 euros, and now I have to settle for 0.74! Economists expect it to tumble 20% more!
5 years ago, a 700 euro bedroom in downtown
Now that very same 700 euro bedroom means I have to fork out 946 dollars!
That means that in 5 years our dollar has lost almost HALF it's value, and falling! Woa!…
"The dollar has fallen for a simple reason: Americans spend a lot more than they save. American consumers, of course, are known for living on credit, and they buy hundreds of billions of dollars’ worth a year of foreign goods. We don’t have enough money at home to pay for all this spending, so we borrow from foreigners" which creates a deficit that erodes the dollar.
With a weak dollar, foreign goods are expensive, domestic goods more affordable, and in theory the deficit gap should close! Though
I think back to the Argentine currency crisis and wonder; Is this another cruel joke? Another staring game where the last investor out looses! Meanwhile, many economists warn us that a dollar sell-off is looming! The dollar could loose it's place as the international currency! The Titanic is sinking but music is playing and people are dancing! Then again, the American economy defies gravity and is very, very, very FLEXIBLE. I know that.
Warren Buffet puts it best: "In general, the batting average of doomsayers in the
In any case, meanwhile a correction takes place, us expats at the ATM machine are left saying; OUCH!
I have learned two lessons from medicine:
#1 The physiological function of pain is to notify you that something is wrong, and force you to stop and react.
#2 The first step to treatment is accepting a condition, and taking the steps to correct it.
Having to get myself through med school independently without student loans means I must plan ahead... for the next 6 YEARS!
A few months ago, I canceled 4 contracts with European agencies that paid me in Euros, since I had to work through the night but had to stay up during the day as well, so I took on American clients where I chose my own hours. Now as I'm about to move abroad, I regret that decision, and will spend the next month building my European contracts again.