Remember all the political talk about the debasement of the dollar? If you’ve been following exchange rates lately you’ll understand that debasement, like the looming inflation that was about to devour the American economy, has been sort of … weak. Like nonexistent.
Wonkblog (Washington Post) posted an astute analysis of the Euro/Dollar situation and came to the same conclusion I did. If you want to go to Paris (or anywhere else in the Euro Zone), now may be the time to do it.
Wonkblog reporter Matt O’Brien wrote: “Next summer is looking like the best time to take that European vacation you’ve been thinking about. That’s because the euro has already fallen to a 12-year low of $1.06, and should keep falling for at least another year. In fact, it shouldn’t be long until the dollar is worth more.”
He’s right – it looks like there’s some chance the Euro will reach the holy grail for American tourists — parity with the dollar. That’s only happened once before, very early in the life of the Euro, and there are still far-sighted people traveling on the Euros they bought then.
Here’s the link to Matt O’Brien’s good article. Don’t miss it. Paris will be nice this summer. I’ll see you there.