You may be right, I have a long way to go tonight, I'm travelling... However, you may have a long way to go understanding the graphs you choose to display in forums. Do you think that a gold bar buys the same today as 200 years ago? With a gold bar in 1900 probably you could buy 1000 acres in Florida. How many acres can you buy today? I think what you displayed is totally irrelevant to the discussion in this thread, which is about the current fall of the dollar versus currencies of countries that do not have near the GDP or economic, political and military strength as the USA.
Stop singing and answer the question: Do you think that a gold bar buys the same stuff today as it did 200 years ago?
The price of oil has escalated far faster than the dollar slippage over the past 5 years .... far far faster. You are being too simplistic in your thinking I fear.
Oil - dollar correlation is -0.7 in the last 8 years. Simply means that most of the time, when the dollar fell against the euro, oil prices rose. http://www.americanprogress.org/issues/2004/11/b258795.html The author is a senior Economist. By the way, what are you? John
I think you totally missed his point. His point was that rising oil is the cause of the devaluation of the dollar. He didn't say there should be 1 to 1 relation in price change between the two. It doesn't have to be 1 to 1. X and Y are correlated does not mean dX/X = dY/Y. John
in 1925 you could buy a decent suit for an oz. of gold, and you can get a decent suit today for dollars changed for an oz of gold... so purchasing power is preserved on a nominal value basis
relax Alex, i didn't mean to flame ya.... I have a few here that pound on me occasionally, I take in stride...... there are some way more wide minded traders than me... I'm a 5 lot piker.....