miðvikudagur, mars 09, 2005

dollars are so '90s

Now one U.S. dollar costs less than 60 Icelandic kronur, its lowest level since 1992. When I arrived here last August, the dollar was around 73. So in just 7 months, it has lost around 18% of its value. (When I first came here in 2002, the dollar was at around 100.)

This is good news for me: when I go home to the States everything seems ridiculously cheap. But it's bad news for my American visitors who will now find themselves paying $6.70 for a gallon of gas or $13.25 for a burger, fries, and Coke. And bad for tourism in Iceland as well, and tourism is one of the biggest industries here. We'll have fewer Americans this summer for sure.

But as long as both the fiscal hawks in the U.S. Government and the average American continue to overspend, the dollar will continue its slide and with it American buying power in the outside world. Next, a $20 burger? Order up!

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