Mish's Global Economic Trend Analysis Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Mish's Global Economic Trend Analysis

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: mishedlo who wrote (83218)	8/16/2008 7:32:23 PM
From: The Vet	Read Replies (1) of 116555

Mish I see that you have repeated this oft repeated statement but could you please provide a reason? "Falling oil prices are yet another reason for the dollar to rally given that falling oil prices will help balance of trade." As oil is almost universally priced and traded in dollars (with very minor exceptions) why should movements in the dollar and the oil prices be related at all? All the trading and most of the costs of producing oil are USD costs so oil doesn't get cheaper to produce simply because the USD gets stronger. After all the price of a big Mac in NYC doesn't fall when the dollar strengthens because all then inputs for a big Mac are also priced in USD the same currency it is sold in.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next