Thursday, May 06, 2010

Europe On Sale? Half Off Riding Alp Twisties?

Euro MC Tour Sale?

Why so many Europeans at Daytona, Sturgis bike weeks? Half the population of Telluride in August is of European descent. They're here because everything in America (for them), is on sale, at as much as 50% off.

Check out a typical ABM Daytona Interview:


ABM- How can you afford to come here each spring?
I-DUDE-I buys me a Honda Gold Wing, sends it back to sell.
ABM- Are they that much cheaper over here?
I-DUDE-Five Thousand Dollars Less.
ABM: And that would pay for the trip?
I-DUDE-Yes, that, and 50 pairs of Levi's.

...It's probably a safe bet that we won't be seeing him at the 2011 Daytona Rally, here's why. Recently, the euro was twice as strong as the US dollar. Hand them 2000 dollars in greenbacks, you get back 1,000 dollars in euros. The I-Dude was simply working the other end of the deal. In reverse, this trend works for us. Suppose you wanted to take one of those expensive euro tours, where they give you a great bike, meals, lodging, guide, and support through 17 countries in 20 days. At half price, some of us might decide to give it a try.

Economics 101:

Current ratio of the euro/us dollar is about 128 to 100, down from a high of 160 to 100. ABM's seen predictions of parity, or one euro for one greenback, or even lower. Price that euro tour, and watch the retail go lower, lower, lower... Finally, our bucks are getting some respect, and that $25 dollar Paris cheeseburger will only cost $12.50.

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