Is it possible for the dollar to plunge, while commodities go down?

Discussion in 'Economics' started by crgarcia, Aug 31, 2008.

  1. Usually commodities, specially oil, tends to move in opposite direction of the dollar.

    Is it possible that oil and dollar move up in unison?
    For, say, a year or more?
  2. highly unlikely. A depression like situation would kill off commodities regardless of the dollar, but the dollar would prolly be strong vis-a-vis other currencies in such a situation. Other countries would probably get hammered worse. If the US was the only one in the shit house however, you could see this happen I bet. The foreign nations would also have to have slow growth stifling commodity demand.

    I don't see another situation in which they both move that way.
  3. promagma


    Commodities boom and bust whenever they want. Here is a % relative chart .... it is big .... but look at '85 - '88 when the dollar was in a steady downward trend.

    P.S. do not show this chart to goldbugs, they get mad.

    <a href="" target="_blank"><img src="" border="0" /></a>