-At my company, our European workers are substantially more expensive than our American ones now, who are in turn, much more expensive than our latin american ones.
-My old boss is moving to Geneva: you wouldn’t believe all the ski equipment and everything else he’s buying here prior to moving-it’s 2-3 times cheaper.
-Every time someone visits from Europe, they head to the mall for a shopping spree.
-My international stock fund has begun hedging it’s Euro risk because it thinks the currency is overvalued (Never happened before-one reason I bought in several years ago).
-the Purchasing power parity models I’ve seen confirm the above.
If our govenment inflates the heck out of the money supply (a real possibility), that could be one way to bring this back into balance, but I’d consider hedging currency risk beyond the Euro if you are worried about the dollar.
