
By: Ricardo
I remember struggling in my college macro-economics class some years ago over the relationship between the strength of the US Dollar, the consumer price index, interest rates and all that stuff. It was the sort of mind-numbing equation that only made me want to pack my backpack even faster for the nomadic journey I was strategically planning instead of doing my homework. But this year I finally got what my professor was trying to explain to me.
Since January 2007 the US Dollar has fallen in strength 12 percent against its biggest rival, the Euro . Therefore my money-belt and US bank accounts that store my greenbacks, which fund my nu nomadic lifestyle, are becoming dangerously anemic. (I'm at risk of sharing the same economic position to those of working expats. Nooo!) For example, when I arrived in Thailand six years ago to begin my work-travel journey, the Thai Baht was 42 to one USD. Not a shabby exchange rate at all. Then, slowly, that rate began to ebb. Now the Baht is only 33 to the Dollar. This means that within six years everything cost 28 percent more-and this is not factoring in local inflation. And Thailand is not the only country that is affected. Nearly all are.
Yup, the ability to take advantage of the higher paying "western" economies while spending it in the lower priced "eastern" economies is now leveling off. China, India, Thailand are but a few examples of what were once "great values " for those with Dollars. But with Asia's emerging economies and America's slide toward recession, I may soon find myself making a circle back to America soon. Yes, America!
The up-side to America's week dollar is that America's (that is, USA, as opposed to North and South America) goods and services are now competitive again! Who would have thought? Now on the world market (which we nomads have to survive in) foreign companies want American airplanes, American computer chips, American stuff. Why? Because the Dollar is now down some 40 percent against the Euro (within the past seven years) and those with Euros, British Pounds or whatever are now taking advantage of the weaker American economy. And now traveling in America can only be cheaper than it has been in decades-especially if your income is in Euros or Pounds.
All over the USA there are small, inexpensive, towns to visit and nomad in. Forget expensive New York and Los Angeles. Think Route 66 haunts and national parks. I mean, really, how much could a one room apartment in say, Winslow Arizona, cost?
I would be very curious to hear from other nu nomads who are currently in the States what prices they're paying for such things as accommodations, food, transpiration and Internet access.