The falling dollar

Olsen

Olsen

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Every so often americans here complain that Leica's prices are increased. Watch it now! The dollar is record low towards the Euro (the Pound, etc.) - and falling. The Leica managment can only do one thing to compensate for this; increase the prices. Again!

So...

If you are planning buying a M8, a WATE or another new lense; run and buy it now!

One advantage should be that your 2.hand gear should increase in value, - in dollars.

The dollar fall is dramatic and caused by a higher probability of a higher interest rate in Europe than in USA. Other factors play a role too. Like the report from IMF telling the world that the US $ is less used as a haven in bad times. As we see now with bombs in Britain, and what have you.

The dollar fall is dramatic for us europeans too. We just might not have a job the day after tomorrow. This could mean bust for Leica and other european exporters dependant on the US market. Or at least huge difficulties.
 
I have been following the currency market, professionally, for almost 30 years now. There's always the other side of the coin to look at. For us, Europeans, there's never been a better moment to snap up superb Zeiss lenses with a huge discount thanks to the EURJPY exchange rate, which is probably in PPP (purchasing power parity) terms about 80% overvalued... I just keep on buying every new Zeiss lens that comes on the market, directly from Japan with a 40% discount (at least) respect to shop prices in Italy....
 
The pendulum swings I guess. I remember when the dollar was more favorable against other currencies. Especially during the late sixties and early seventies when I was in Vietnam. In fact, I have always believed the Vietnam war and US GI's spending desires did more for the Japanese ecomomy than credit was given for.

I never did believe all that was said about the Japanese model being so good and that it should be taken up by others. The only model that would be worth following was their subsidies of their own manufacturers to drive compeditors out of business. Of course all that is just my opinion.

Enjoy it while you can. We did, now I guess it's your turn.
 
I would like to know what the difference in tourism is like from 06 to now 07 with the dollar as weak as it is. Leica is already pricing themselves out of the market. Not only that, but production rates had better improve or nobody will be buying their equipment. :bang:
 
I went to England and Scotland last Fall, it was a wonderful trip, couldn't have been better. In fact, I'm booking UK again next year. But even in September 2006 prices were high for Americans (USA). When you went to a restaurant the menu looked like one from the US except you realized that it was Pounds and double what it would be in the US; ham sandwich was $17.00 at a museum café. Two beers and two sandwiches with tip; $45.00. I asked someone what Social Security paid in the UK they said an average of 800 Pounds per month, that translates to $1600 in the US.
 
mfogiel said:
[...] I just keep on buying every new Zeiss lens that comes on the market, directly from Japan with a 40% discount (at least) respect to shop prices in Italy....
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How do you do that?
 
EmilGil
I buy via the bay from Matsuyiastore - there are also a couple of other sellers that ship from Japan. So far, I haven't paid any significant customs duties (abt 5 EUR a shipment only). But if I bought from the US the post office would impose duties, taxes etc... It looks like the old Pact of Steel is still silently in the works... haha...
 
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Please invite me.

Please invite me.

For us Europeans there is also our VAT a sales tax wich in Belgium is 21% on non food. So a 5 pack of Txp 320 220 film is about 30 dollar at adorama NY in Belgium you pay 55.86 $.
No wonder the security person at JFK spent 15 minutes manualy checking each pack because I was afraid of the scanner hurting my investment.
But ****, now I have to go back to get X-TOL.
Anyone coming to Belgium can earn himself a couple of beers in Antwerp.

Oh and a lobster from Grand central station would be nice to. ;)
 
It was at the National Art Museum Cafe' that is near Nelson Square; $17.00 sandwich and $6.00 beer, that is times two, I let my wife eat too.
 
Olsen said:
Every so often americans here complain that Leica's prices are increased. Watch it now! The dollar is record low towards the Euro (the Pound, etc.) - and falling. The Leica managment can only do one thing to compensate for this; increase the prices. Again!


And the weak yen, even as compared to the USD, makes CV and Zeiss highly competitive. Manufacturing in Euroland, and notably in Germany with its 35 working hours a week and 6 weeks of vacation per year, is a challenge for Leica, especially when considering that its most important market is the US.
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sherm said:
...Leica is already pricing themselves out of the market.
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Well for some of us Leicas have always been beyond the reach of our wallets! :(

Having recently acquired a Bessa R3M which, so far, I'm very pleased with. I'm not sure having used it that I could justify the extra expense of an equivalent Leica outfit even though I have long wanted to own one
 
I've said this before, but: The "weak" US dollar is a deliberate US government economic policy designed to discourage Americans from buying imported goods, and to encourage non-Americans to buy goods from the US.

Judging from the posts in this thread, it appears this policy is working perfectly! So you can expect to see more of the same.
 
retow said:
Germany with its 35 working hours a week and 6 weeks of vacation per year.
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God, I wish I lived in Germany. That sounds wonderfully lazy.

The dollar is still strong against the Yen. I recently moved home from Japan and the exchange rate gobbled up a good chunk of my savings.
 
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You thought the beer was dear...
Gas (the other sort, 95 octane unleaded) is 1GBP (say 2 USD) a litre... forgotten what US gals are but that is about 8USD a USG.

TLAs are us

Noel
 
Xmas said:
You thought the beer was dear...
Gas (the other sort, 95 octane unleaded) is 1GBP (say 2 USD) a litre... forgotten what US gals are but that is about 8USD a USG.

TLAs are us

Noel
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Its' getting there if you subtract the taxes. US 3-4 per Gallon now. Diesel not fully available.
 
ferider said:
Its' getting there if you subtract the taxes. US 3-4 per Gallon now. Diesel not fully available.
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......b.b.but we can't substract the taxes.... The price of 95 octane today in Oslo NOK 12,25 - which is cheap. That's $ 2.11 per litre. That's $ 7.98 per gallon....
 
That's why I mentioned Diesel.

But here in California Hybrids are way more popular than the better TDIs :bang:
 
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