A quick note for all the vacation planners out there: Don't ski in Switzerland this year, stick to Colorado. Don't sip wine in France, stick to Napa Valley.Today's chart gives you the reason. It's the abysmal performance of the U.S. dollar in 2009.
You can view currencies like the "stock" of a country. When times are good and its finances are in order, a country's currency tends to rise. When times are bad and its finances are a debt-soaked mess, a country's currency tends to fall.
Measured against a basket of other currencies, the dollar is down 10% since the spring. This is an enormous drop for a major currency. It's a drop that has eroded the purchasing power of your savings account, the cash in your wallet, and your "vacationing power" as well. It's the sort of fall that leads American tourists in Europe to shake their heads and say, "Good lord, things are expensive here!" Our advice right now: Keep the vacation in the States.
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