The dollar's impotence

I remember when I came back to Beijing in 1999, I was able to get 8 RMB for every dollar. All of my relatives were eager to exchange their RMB for my valuable American dollars with the hope that it was going to keep increasing in value. Now, the dollar is worth barely 6.7 RMB. With the decreasing dollar and China's inflation, none of my relatives want my dollars anymore. And check this out: travel agencies with trips to Hong Kong, Malaysia and Singapore charge those holding American passports over 1000 RMB more than those with Chinese passports. The reasoning is that Americans tend to buy a lot less than Chinese citizens in these consumer-driven countries, that the extra fee offsets what the travel agencies lose in commissions they would have received from designated stores they take their tour groups. Americans consume less because of the weakened dollar and that things can be found cheaper in the US. Also, the Chinese are now the 3rd largest consumers in the world. When they spend money, they really go all out! More about the Chinese consumer culture later...