The Dollar-Fifty-Six Euro
"When some Americans travel to Europe these days, they are shocked at the anti-American (or more precisely, anti-Bush) attitudes expressed by the Europeans. Me, I'm used to that sort of thing, so when I heard such sentiments on my recent vacation, they didn't surprise me much. But what did shock me was the airport currency exchange counter. To buy one Euro on the day I arrived, it cost me $1.56. This hasn't happened yet, but signs are pointing to other countries at least considering this sea change. In 2007 the Euro has hit a new high as a percentage of the world's reserve currency (25.6%), but although the dollar has dropped a bit from its high of around 71%, it's still a comfortable 64.8% which is not even at the low of 59% reached in 1995. The Euro, in other words, still has a long way to go before it replaces the dollar in the world's bank vaults."
The strangest manifestation of the weak dollar in Europe right now is the hordes of European shoppers coming to America (New York City, mostly) to do their Christmas shopping. While some are Euro-yuppies who are buying foreign goods for their chic value (the same way we buy European products because they're "cooler" than American products), many are simply looking for a bargain.Is this to be America's future? Bargain basement to the world?"
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