The US Dollar has been steadily falling in value against practically every other currency for the last few years. This is the 5 year chart for the Euro vs US Dollar. Depressing isn’t it? If you’re selling into the US you would have to raise your prices by 30% just to make the same income you did in 2003, and that’s ignoring inflation. That Google Adsense cheque is worth less and less every month!
In preparation for the day when the US Dollar is worth practically nothing, a new bill will be introduced. The Zero Dollar bill will make it easier for US residents to realise how much buying power their currency has.
It’s the perfect currency really. The Fed can print billions of these bills and it won’t affect the Forex markets. It is expected that the US will attempt to adopt the Euro as it’s primary currency shortly afterwards but will be rejected because their national deficit is above the 3% required for membership. (via)
Yup, especially depressing when your earnings are in dollars, as are ours. We haven’t increased the price of subscriptions or advertising on our site for 5 years but now have to give it serious consideration. Inflation hardly matters to me… the exchange rate completely overshadows it 🙁
It works for and against me, in that my Google cheque is devalued, but the margins on the domains I resell is higher. I think it works out about even in the end atm, but I’ll win out on balance in the new year when I roll out a public ordering system.
adam
It’s more of a benefit to me with the dollar falling – all my US purchases are now getting cheaper. 🙂
Of course, when I do get round to earning $100 from Google, it won’t be worth as much, but in comparison to what I’m paying out over there, it’s still a decent chunk of change 😉
It works out nice when buying services from Rackspace. Only thing is they insist on a US billing addy.
AJ – true. My hosting bill has been going down every month, and domains get cheaper too.
Now, if only someone would tackle the price of petrol. Surely it should be cheaper now that the Dollar is so weak?
It’s great for some aspects of our business, but it’s not beneficial in the longterm
LOL @ the serial number on the zero-dollar bill. Hey, I didn’t vote for him, but his strategy was very clear: create a panic among the religious, that if Kerry won abortion would continue to be legal and gay marriage would soon be. I watched a documentary movie “…So Goes the Nation” the other day and it suggested, most likely correctly, that people don’t mind the economic problems under the current administration as long as God can bless America.
But I guess, as the other comments have shown, those economic problems might be good for those of you buying American services from other countries.
Perhaps this is why we should vote for Ron Paul. He believes in the US Constitution and wants to abolish the Federal Reserve and the IRS. He hates the stealthy inflation tax that the government is pulling on us, and he fights for the cause of liberty. 2 days ago, supporters organized a 1-day “money bomb” in which $6.04 million was raised.
Donncha, wouldn’t the weaker Dollar actually mean more expensive petrol?
Elliot – petrol should be cheaper in the Euro zone because oil is traded in US Dollars. I should get more bang for my Euro because it’s worth far more than the Dollar.
What I want to know is, will oil ever be not traded in US dollar? If that where to happen the US dollar would no longer exsist. Could this really happen? Also, if i where to move home now, how bad would it really be? I have been saving money in Euro for a year now and if I convert I make out like a bandit. i just can’t decide what to do….anyone have any ideas??
Thanks in advance 🙂
If Opec ever switched from dollars to the Euro I’d bet the US would react with it’s military, just like it usually does.
And obviously you are blaming Bush for the devalued dollar. That shows ignorance on your part if you actually believe that. I’m defending Bush, I just hate it when people try to throw political party into something they are not happy about.
Find out what Congress and the House have done with the American dollar before you blame one man. Look at all the facts, not just NBC news.
I have to agree with Michael: the devalued dollar has nothing to do with Bush. There are 2 root causes:
1) The Federal Reserve, established 1913: the dollar has fallen steadily since then.
2) Richard Nixon, who ended the gold standard in 1971. At that time, gold was fixed at $35/ounce. Now gold is nearly $1000/ounce.
Most likely the ones that are implying that they are blaming Bush are EXTREMELY UNEDUCATED,watch a heck of a lot of CNN,NBC News and only pay attention to what mainstream media reports.You can’t do that.You have to look at all the facts.I know of a lot of Democrats that have already made up their mind as to whom they are voting for which would be McCain.Why would we want higher taxes?Why would we want to continue to buy oil from the Middle East when we have our own oil and have had ever since the Environmentalist stopped the drilling approximately 20 years ago or so.
I was paying 55cents per gallon when I was in high school back in the late 80’s.I could fill up my tank for under 10 bucks! Can’t do that now.Wake up people! We have to take a good look at the real issues that affect all of us and that is energy sources and the economy.Anyone ever thought about a consumer tax? The other thing we need to do is cut back on BS gov’t spending and stop depending on the gov’t to take care of us.The system wasn’t designed for people to make it a career to be on welfare,it was designed to be used as a stepping stone.But so many people have just drained the system.Those are the important issues the ones that will affect all of us directly,not abortion.
Kendra, I think you have the names mixed up, far as whom the democrats are voting for. I can almost bet it would not be McCain. Surely it has to be Barak because, no one can stand another year of going through what we have just encountered.
hellp my pleas i am not 1 dollar anyway healp my