Dollar Slides Amid Inflation in Russia

In the U.S. the American economy is showing rapid growth.  You won't see that touted much with the MSM but its happening all the same.  The Real gross domestic product came in at a "breathtaking 3.9 percent annual rate for the third quarter", according to an article by Larry Kudlow today. 

At the same time the dollar is taking a nosedive after a Fed Rate Cut.  Currency buyers are dumping their dollars and it is causing the value of the U.S. dollar to decline.  Perhaps that is not felt by the average consumer in home town America but we're feeling the crunch here in Russia.  We get our income from the U.S. and our partners there.  That means we're paid in dollars.

The Euro is up to $1.4503 against the dollar.  That means the Russian Ruble is down to 24.6918 to the dollar.  Consider the prices here in Moscow and it is an uncomfortable combination.  According to an article in the Moscow Times recently, gas prices here have surged past U.S. averages.  I've seen it above 20 rubles for a liter at all gas stations here.  That's nearly a dollar per liter, it takes four liters to make a gallon!

Hotels are the highest anywhere according to tripadviser.  The average price for a room here is just below $400. per night.  A loaf of bread is around 14 Rubles, used to be 7.  One liter of milk now costs more than a dollar.

They tell me that the dollar is making a rebound now, though slowly.  That will bring relief to us but it doesn't look like it will happen any time soon.  The Fed Rate will probably not cooperate.  In the mean time we will feel the crunch.