You should also read this, Kenneth...
Effect of U.S. dollar value on oil prices
In discussing the effect of the changing value of the U.S. dollar on the real price of oil, however, it is important to include a calculation of effective exchange rates of the currencies in question, to separate the real and nominal values of those currencies. This method accounts for the amount that a dollar can buy (of electronics or food for example) compared to the amount another currency, such as a Euro or pound sterling, can purchase. While the U.S. dollar has lost nominal value to other major currencies from 2001 to 2007, its change in real value has not differed significantly from other currencies.[54]
In addition, by comparing the price of oil in various currencies to the fluctuations in the exchange rates of those currencies it is clear that oil price is no more significantly correlated to the value of the dollar than to any other currency. This also holds true in a comparison of oil price to gold price.[55] Similarly, since the early 1970s, the price of oil has been negatively correlated to the value of the dollar, suggesting that the price of oil has more of an effect on the value of the dollar than vice versa. As developed economies depend heavily on oil for transportation, petrochemical feedstock, and industrial agriculture, this correlation would affect most currency values.[56]
en.wikipedia.org
I hate to burst your DNC bubble, Kenneth, but you are wrong again. :)
Diz- |
