The Euro

The price of the Euro is killing us.

When we bought our first apartment seven years ago this month, the rate of exchange was .98. Basically 1 to 1. For every Euro spent, we spent $1. It was easy to figure out and the price of things made sense.

A lot has changed in seven years. While the exchange rate isn't at an all-time high of over $1.60, it is now in the $1.43 range. We have been waiting for the rate to drop before exchanging money and wiring it over to our French account, but we're running out of time (and Euros).

There was one second in the spring when the rate was $1.24. We sent a small amount of money, betting that it would stay in this range. We were wrong. My Euro 2.20 coffee will cost me $3.15. Maybe this is OK because tax and tip are included. But this is about 3 oz. of coffee when I can get a medium coffee (which is huge) at Starbucks for $1.95. I won't continue this mental exercise, I'll get too upset.

It's tax time in France and we will owe Taxe Habitation and Taxe Fonciere in addition to our normal homeowner's association bills, and the day-to-day cost of living expenses like food. I'm whining, I know.

From my perspective, it seems that when the US economy is in trouble, the Euro drops against the dollar and then the inverse is true. As the stock market rises, the Euro rises against the dollar. I'm not an economist, this is only my observation.

Feeling poor and frugal, we'll be wiring the dollars to our account as Euros, thinking about the good old days of an exchange rate of 1 to 1.