Christmas Joy

 

Ocean, originally uploaded by bill kralovec.

We had a nice day yesterday as a family. The kids were up early and so excited to open their gifts. Nadia and I have been using the “Santa Card” to get them to be calmer and to listen to us. Too bad that option is now over. it was so funny that Oliver even asked had he been good enough to receive gifts when he first awoke on Christmas morning.

Ocean really wasn’t sure what was going on, but she got into it when she saw her “Dazzling Dreams Castle” doll house. She also enjoyed her Princess car. We bought a monitor and key board to go with Nadia’s old Mac Mini for Owen so now he has his own computer. Ollie’s favorite gift was a car race track.

We ate a real Serbian turkey. I am used to those industrial factory raised turkeys from the US with the bland taste. This turkey tasted “meaty” and for example, had bones and cartilage on the drumsticks that I didn’t know existed. In the US, turkeys are not bred to walk and so the drumsticks have less connective tissue to get in the way. Nadia also made a raspberry dessert that was absolutely spectacular. I ate way too much and had a hard time jogging in the afternoon due to a full stomach.

As you can see in the photo above, our Christmas tree is doing fine. We bought it from a tree farm, roots and all a few weeks ago. We intend to plant it in our yard after the holidays are done. We bought  a large pot and extra soil for it to stay alive. This is common with Serbs, as the culture appreciates trees and almost regards them as sacred. Belgrade is filled with trees on every street and there are strict laws which prevent people from cutting them down. I guess that trees helped the Serbs survive against the Turks. The hajduks hid in the forests while the Ottomans inhabited the fortresses in the cities and towns. I think it is a great tradition and our family will never again use a fake tree or cut a tree to use for a few weeks.

Big Mac Index In Serbia

Last night we took the kids to McDonald’s. I recently read a blog post about the Economist Magazine’s annual article on the Big Mac Index. The Big Mac Index is an informal method of predicting future currency exchange rates between the USA dollar and other currencies. The idea is the Big Mac, the world’s most popular sandwich should cost the same in every country. It there is a difference in prices, then the currency is overvalued or undervalued and should change in the future. 

The cost of a Big Mac in Serbia is 200 RSD (Republic of Serbia Dinar). This was at the McDonald’s on Slavija Circle in downtown Belgrade. The current price of a Big Mac in the US is $3.54. Today’s exchange rate is $1 = approximately 67 RSD. That would make the cost of a Big Mac in Belgrade to be $2.99, significantly cheaper than the US. In calculating a purchasing power parity percentage, the RSD is undervalued by 15.68%. The significance is that the power of the RSD should rise in the future and the exchange rate of 67 RSD/dollar should fall. 

Interior Dining Area of McDonald's near Terazije Fountain (Aug. 2008 photo)

Dining at McDonald’s in Serbia is not the same experience as the US. Generally speaking, McDonald’s is more of an upscale dining experience in Serbia than in the US. Lower income people in Serbia can’t afford to eat there often while in the US the poor go more often. McDonald’s in the US is viewed as a cheap meal or an eventful experience for families. We go about once every couple of weeks because the kids love it and it is an easy meal for us. 

I’ll be interested to see where the exchange rate goes in the first half of 2010. According to the Big Mac index, it should be dropping.