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eminence grease
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Was out shopping for a Record group last night and chatted with the guy from Excel. His good news - expect a 20% price increase in the next catalogue. They also couldn't do the traditional price reduction on deletions and straight across swaps for the alloy and carbon crank. TX Cyclesport and Wise still have groups with prices down here in reality however.

Was also looking at the price for a C50 from Mike Perry, his good news - what was a $2600 frame last fall is now a $3150 frame. All this as our noble currency slides from 1.6 to the pound towards 1.9. The big epiphany for me was that I do in fact have an obscenity line - that which no bike purchase shall ever cross. The C50 sadly is now on the far side of that ($5800+ to build it myself!) So much for my 50th, Ernesto's 50th and the grand cosmic alignment.

Buy them while you can, before the Dollar turns into the Yen.
 

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Every little counts...
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Try shopping Canadian, labicicletta.com or racersportif.com.

Or, import direct from Europe using maestro or totalcycling
 

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I thought I had it bad!

It's all relative I guess: I have a $700 Spec. Allez (105) and I'm looking seriously at a used Litespeed Siena, full Dura Ace, for $1800. That's a huge jump for me, one I knew I had to take sooner or later. Sorry for the off topic, not related to the sinking dollar, just venting my 'sinking feeling' since wife doesn't think I need to sink more dollars into biking! I should let her read some of these posts; she doesn't know how good she has it!

hrv
 

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eminence grease
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Discussion Starter · #5 ·
Spunout said:
Try shopping Canadian, labicicletta.com or racersportif.com.

Or, import direct from Europe using maestro or totalcycling
Maestro was what I was talking about in my original post. Mike Perry has a nice letter written to we the currency challenged about holding the line on prices. The cost of the frame did go up though, by $500 bucks from when I started looking.
 

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Sinking dollar sucks!

As an american living in europe let me tell you how bad it has become! When I got here it was about 90 cents on the euro, now it is 75 cents on the euro (roughly). This means a Big Mac Maxi Menu is now 4.50 Euro and almost 6 dollars.

Don't believe they hype about bike components being cheaper here either. Most retailers make their money on slag heap parts to keep granny's three speed grocery grabber going. The majority of stores have actually less of a selection than back stateside, of course those shops that specialize in "Rennrads" racing bikes have amazing selections so there is an upside! But all in all an ultegra cassette here runs about 60 euros, supergo has it for 30 dollars. In most ways we are still much better off in the states...
 

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The US dollar will likely sink further

The following is an extract from an opinion column in The Economist, dated Feb 5, 2004: "The drop in the [US] greenback was inevitable and should benefit both America and other countries, because it will help to reduce America's vast current-account deficit [the US exports fewer goods and services than it imports], which is arguably one of the biggest threats to the global recovery. For the same reason the dollar should, and almost certainly will, fall further."

In terms of planned expenditure, it may be best to purchase now rather than later.
 

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Shimano prices have jumped already- but part of that was due to new XT and D/A groups. Quality let everyone know about the price jumps coming- Campy ect going up.

Ouch.

:(
 

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rock n rolling resistance
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You mean I have to pull the trigger again?

In terms of planned expenditure said:
I bought my KG486 about a month ago from Total after snoozing and letting the exchange rate go from 1.60 to 1.82. figuring I couldn't let it slide anymore which was a good thing since it slid to the current 1.92 since then.

But there is a PR4 C50 compact from Maestro on my agenda yet. My lbs offers 4000 but even with current rate there's 800 diff. to Maestro's price. I am not $800+ loyal to any merchant. I figured, since I got my 486 to take care of the fix, I'll wait for a while to let the rate recover. But now you are saying I should pull the trigger again? Yikes, in a month! And I need to fork over for another Record set again? :eek:
 

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Jeez, I wish my C-50 would get here soon. It's been 3+ months since I ordered it from Maestro. Now it's going to cost me even more the longer it takes. I'm starting to get concerned about my final price if the exchange rate is up to 1.9 now. :eek:
 

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I wouldn't hold your breath

"I figured, since I got my 486 to take care of the fix, I'll wait for a while to let the rate recover"


I saw a story on the Nightly Business Report today about the sliding value of the $US and someone from the Federal Reserve said that the dollar was "undergoing a structural adjustment in the rate that would last for several years".

From an Aussie point of view, the improvement in the $AU vs $US & pound means it's much cheaper to get parts, clothing etc from the US or the UK. Works out to be between a third and half what you can buy them for here at an LBS (even including freight costs). That sort of difference is too much to ignore. Someone over here is making a killing and according to my LBS it's the middlemen.
 

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Even worse in the UK

I get paid mostly in USD but live in London. When the £1.00=$1.90 versus $1.60, I just took an annual pay decrease of 18.75%.

Moaning about increases in bike prices is small potatoes when you're sucking wind on your whole pay check. Never mind paying income taxes in both countries because the US has tax sharing treaties with basically no one!
 

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you must be doing something wrong...

boneman said:
I get paid mostly in USD but live in London. When the £1.00=$1.90 versus $1.60, I just took an annual pay decrease of 18.75%.

Moaning about increases in bike prices is small potatoes when you're sucking wind on your whole pay check. Never mind paying income taxes in both countries because the US has tax sharing treaties with basically no one!
the US does have a tax treaty with the UK. also the US allows for your first $80,000 to be exempt from US tax. the UK tax rate is higher than the top US rate of 39.6% (recently lowered i think) so you should end up only paying the higher UK rate on your income (even if you make above $80,000).
 

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Not a treaty

MPH74 said:
the US does have a tax treaty with the UK. also the US allows for your first $80,000 to be exempt from US tax. the UK tax rate is higher than the top US rate of 39.6% (recently lowered i think) so you should end up only paying the higher UK rate on your income (even if you make above $80,000).
Tax treaties are generally a bit more complex but for individuals, it effectively eliminates the concept of taxation on global earnings. The US is one of the few countries left with this law and the people working outside of the States are not enough to make a difference in the budget.

The $80k is actually a reduction for foreign source income in calculating your AGI. If you make anything over that, SOL. Further you also get a Foreign tax credit. Like all things, formula driven. Credits are good but still, on an effective basis, I pay more in total.

My tax return's gone from 10 pages to 71 pages. Trust me, it sucks.
 

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That and the marriage penalty

divve said:
...I faintly remember good ole Bush promising lower taxes for expats....still waiting :)
still waiting and will likely continue to do so.........
 

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more on taxes

boneman said:
Tax treaties are generally a bit more complex but for individuals, it effectively eliminates the concept of taxation on global earnings. The US is one of the few countries left with this law and the people working outside of the States are not enough to make a difference in the budget.

The $80k is actually a reduction for foreign source income in calculating your AGI. If you make anything over that, SOL. Further you also get a Foreign tax credit. Like all things, formula driven. Credits are good but still, on an effective basis, I pay more in total.

My tax return's gone from 10 pages to 71 pages. Trust me, it sucks.
I'm sure your tax situation has been complicated by being a US citizen or a green card holder (i assume) living in the UK!! Ya, the 80k is an foreign earned income exclusion. So let's say that you make $200k as salary for services rendered in the UK - therefore this will be foreign source income. The 80k will offset the 200k. So you're left with a 120k of taxable income in the US.

Assume you paid tax at a 40% rate in the UK. So you paid Inland Revenue 80K in taxes.

Assuming a flat rate of 35%, you'd pay 42K in taxes on your 120K of taxable income in the US but for the US foreign tax credit.

The US foreign tax credit is limited. The formula is foreign source income divided by worldwide income multiplied times the US taxes that would otherwise be due on this income. So in this case it would be 120/120*42 which equals 42K. You have more than 42K of freign taxes paid so this limitation should not limit your ability to credit the entire 42K of taxes you owe in the US. So you end up paying no US tax. Therefore, no double taxation.

However, your limitation may be adversely affected by any foreign source losses you may have or anything else that may muck with your FTC limitation. then you'd get screwed... but for most people, no double taxation should occur...

so unless you have complicating issues (such as foreign source losses) then you shouldn't be double taxed.

also, any US source income (e.g., dividend income from US investments) should not be subject to UK taxation except for in certain limited circumstances that can be planned around.

hope this helps... just hope you're not giving the tax man anything more than you should!
 

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You volunteering to do my taxes?

You a tax accountant? Very nice summation of the pertinent code, better than the IRS could ever achieve in their publications.

All correct but when the gross numbers get big, the difference, UK vs US in maximum rates has a serious cash effect and I hate negative 5 figure arbitrage from the taxman. There's also the issue of investment income and income property in the States, coupled with foreign source income.

KPMG did my returns for 3 years and E & Y for the last 2. I used to do my own but it's all gotten to be too much in terms of time and complexity so I let the company pay. Now if only they made up the difference!
 
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