Oil Prices, Dollar Versus Other Currencies Posted on June 7, 2008 by Yves Smith This chart, courtesy Menzie Chinn at Econbrowser, says a lot: SDR is Special Drawing Rights,. Note the dollar is 44% of an SDR. Post navigation ← California Water Rules Curtailing New Development Links 6/7/08 → Subscribe to Post Comments 5 comments Jojo June 7, 2008 at 1:53 am 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. Yves Smith June 7, 2008 at 2:01 am 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. Anonymous June 7, 2008 at 4:25 am May I suggest that commodity value in terms of gold is more informative given by Nathan Lewis at:http://www.nibiruresearch.com/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. Anonymous June 7, 2008 at 1:51 pm Take a look at these graphs: http://www.siv0.com/Art_gasoil_6_2008 Markhttp://www.siv0.com Anonymous June 7, 2008 at 7:32 pm 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. Comments are closed. Tip Jar Please Donate or Subscribe!