Well, if I thought the US Dollar was behaving on the economic stage like a big girls blouse before, I clearly underestimated its ability to plunder the depths of unmanliness. As of this morning the dollar has minced up to a shockingly effeminate GBP£1 == US$2.078 on the back of the US central bank dropping their interest rate again. Since a significant part of my income (and Ogre website ad funding) originates from the US, this of course is a royal pain in the ass. It seems that no matter what rate I agree on a contract, or what exchange rate I factor into that, the US economy manages to make it worth less by the time I actually receive it. I’ve considered opening a US$ account for my company to allow me to choose the point at which the conversion happens, but since I couldn’t afford to leave it in there for very long right now (since almost all my bills are in Sterling) it’s not yet hugely practical. Especially as the rate has only got worse in the last few years anyway so delaying conversion would have actually been to my detriment.
What makes me laugh is I catch CNBC occasionally at lunchtime and they always (rather arrogantly I think) start the show with “Welcome to New York, the financial capital of the world…”. On what measure is that based I wonder? I read an article in the Economist recently (I was waiting in the doctors surgery, ok?) on how more stock activity is going through London than Wall Street these days because that’s where many of the newer, high growth Asian based companies are registering, because of the more cumbersome US regulation like Sarbanes-Oxley - and I’m sure the dollar weakness doesn’t help either. I’m not an expert but I wonder if the ‘financial capital’ claim is just bravado these days.
Please get your economy sorted out America, it’s getting embarrassing.