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Re: Cancelling Our Next Trip to Amsterdam?
Posted: 2008-04-17, 12:28 pm
simon_the_byron
Posts: 12
Location: London, UK
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They're going to bring in a new currency in North America called the Amero. Part of the reason the fed is purposefully devaluing the dollar is because the US is in a lot of trouble with debt and they're trying to pay some of it off with other currencies they have in reserve so they get a favourable rate.
The main reason is that they will claim that the Amero is the answer to the current problems within the economy, of course it won't be - because as long as we have a banking system that operates using FIAT currency, the eventuality will always an insurmountable debt that keeps growing with us working to pay it off.
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Re: US DOLLAR IN THE TOILET
Posted: 2008-04-17, 5:03 pm
markcheech
Posts: 325
Location: Massachusetts
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the american dollar and great gas prices have all but killed our plans for next april. and we read a report yesterday that hotel prices are on the rise in a'dam.
we're now looking to Jamacia for our trip next April. It's not worth loosing so much on the conversion for us. It totally sucks, beucase we had a group of 15 that were joining us. Now there are none. :o(
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Hedging
Posted: 2008-04-17, 9:37 pm
Tab
Posts: 51
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A friend of mine runs the foreign currency hedging op for a fortune 50 corp. His primary objective is stability so if he knows they'll buy $2m in aluminum sulfate in the EU over the next 12 months he'll begin buying euro's to cover it. Faster if he thinks it'll be getting stronger, slower if weakening. We do the same with our personal funds. For the past couple of years we've been each buying euro's to cover our personal expenses while in Europe. He told me that euro's would be beating other investments. He now believes that euro's will be falling against the dollar so it's best to keep yourself in dollars (invested appropriately - such as a brothel in Australia) and only get euro's on a just in time basis.
He thinks the dollar/pound will remain about the same for the foreseeable future.
BTW, he deals in enough cash that he invests his cash position overnight at the end of each day. On average he earns over $35k - in ONE NIGHT.
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Re: Hedging
Posted: 2008-04-17, 11:22 pm
amsterdamfats
Posts: 154
Location: jersey usa
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Does he give lessons? I have some cash to lend overnight.
I hope he is right concerning the euro/dollar exchange. I think I did far worse with the euro this trip than the sterling. As long as I stayed out of the tourist traps in London, which I did for the most part, I did alright. It is hard to stay out of the tourist traps in Amsterdam. The whole place is a consumer's orgy. No complaints though!
Sex Drugs and Rock n Roll and they ask you to come back again!!!!
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Re: Cancelling Our Next Trip to Amsterdam?
Posted: 2008-04-18, 12:16 am
londonbasketcase
Power Kat
Posts: 694
Location: Metropolitan area of Homeland
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Dear All,
I was in Germany last week just as the GBP hit a 7 year low against the EUR of 1.25€ to the 1GBP on Thursday, 10 April 2008.
I duly drew my EUR from my bank account and spent them on goods and services provided by Germans trying not to think of the worthlessness of my premium pounds sterling. When I got back to London this week and checked my bank statement I found on the Friday, 11 April my rate was 1.2445 but by Saturday and Sunday for the weekend I was getting 1.2505.
I was burnt last time I took cash GBP to exchange for EUR when the wholesale rate was 1.27 meaning that I was shafted when I was given only 1.13 at the Western Union foreign exchnage bureau in the Frankfurt Hbf.
I now rely on my debit cash cards as giving me the best deal as my bank does not charge bank fees or foreign exchange fees and therefore I receive wholesale rates and not retail rates. The only downside is that my daily limit is only GBP£300 giving me between 370€-380€ to withdraw per day when my last bank account allowed GBP£500 cash withdrawals.
I found my credit card gave me wholesale exchange rates as well but then there is a hefty 3% service charge plus daily interest from the date of withdrawal. Still if you pay off the credit card quickly after the trip the 3% cost is still a lot better than the shoody rates that Bureau de Changes give as based on 1.25€ FX rate to the GBP less 3% you still receive 1.2125 which is a lot higher than the UK High street rates of 1.18 to 1.19 from the likes of American Express or the UK Post Office I have been seeing in the UK. A lot better than the rip off 1.13 I got in Frankfurt.
Kind regards
Londonbasketcase
_________________ Pay for play since any loving is good loving.
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Re: US DOLLAR IN THE TOILET
Posted: 2008-04-19, 1:57 am
SVU18
Power Kat
Posts: 558
Location: NYC
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Coming over from the states next week. $2700 gets me 1700.00 Euro..ouch!!! This will be my last trip until things get better.I hate George Bush!!!!!!!!!
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Re: US DOLLAR IN THE TOILET
Posted: 2008-04-19, 2:53 am
TranceAddict_2u
Posts: 31
Location: Mass
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"I hate G. Bush"
The line forms to the left ;-)
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Re: US DOLLAR IN THE TOILET
Posted: 2008-04-19, 10:03 am
londonbasketcase
Power Kat
Posts: 694
Location: Metropolitan area of Homeland
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SVU18,
"Coming over from the states next week. $2700 gets me 1700.00 Euro..ouch!!! This will be my last trip until things get better.I hate George Bush!!!!!!!!!"
If you are getting USD$1.58 to the 1€ then that is a wholesale FX rate. Well done for procuring that through your bank. I take it there are no commission or service charges?
I am kind of fortunate in the same sense to have picked a UK retail bank that gives wholesale FX rates for cash withdrawals from overseas on debit cards. No commission or service charges. Most other banking product providers charge like 1.5% to 3% commission on FX.
Kind regards
Londonbasketcase
_________________ Pay for play since any loving is good loving.
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