Dollar Slides and Its Impact in Europe and Russia

In the U.S. the American economy is showing rapid growth. According to The Townhall, America's GDP came in at a "breathtaking 3.9 percent annual rate for the third quarter."

At the same time the dollar is taking a nosedive after a cut by the Federal Reserve in the leading interest rates. 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 back in the States but we're feeling the crunch here in Germany and Russia. We get our income from our partnering church in the US. That means we're paid in dollars.

The Euro is up to $1.4503 against the dollar. Combine the low dollar with the high price of oil, and you can imagine what it means for missionaries in Europe. Monday we drove to the German national assembly (for our denomination), that morning I filled up our VW with diesel (which is much cheaper than gasoline) and paid just over $100. When I filled up again yesterday, my tank wasn't quite as empty, but we still paid $87.

Simultaneously, the Russian Ruble is down to 24.6918 to the dollar. Consider the prices in Moscow (with its 9% inflation rate last year) and it is an uncomfortable combination. According to an article in the Moscow Times recently, gas prices in Moscow have surged past U.S. averages. It's not usual to see gas sold for $4 per gallon. On my last trip to Moscow, I paid over a dollar (28 rubles) for a liter of milk.

Will the dollar rebound? Well...my experience says, "Only time will tell." Talk about Russian roulette.....