1. Jojo

    I am not sure I understand the point of a chart like this. Of course there will always be price differences depending on the where each currency is valued at. Should the USD gain on the EUR, then the chart lines will come closer together [shrug].

    So what are we supposed to do with this chart? I guess we can stick it in the face of Congress and the Bush admin and say – see what happens when you overspend via borrowed money and cut taxes foolishly. But I don’t think either group really gives a crap.

  2. Yves Smith

    The chart indicates that the runup in oil isn’t solely due to the depreciation of the dollar. Europe has kept its rates up and it is still seeing higher oil prices.

    And it also gives a quick visual as to the relative pain.

  3. Anonymous

    May I suggest that commodity value in terms of gold is more informative given by Nathan Lewis at:
    If we were ever in need of sound money it is now. World currencies have no peg to any real value. Nathan Lewis is a lone voice in the return to the gold standard argument, in that he understands how it really should operate. His book should be read by every central banker and finance minister.

  4. Anonymous

    Good thing the world has piles of US dollars and oil is priced in dollars or the US$ wouldn’t even be allowed on the chart.

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