Is it that Oil Prices are "High", or is it that Greenspananke have made the Dollar WORTHLESS?

[El Pinko]

This graphic is a little dated, but you get the point...





The red line is the price in EUROS, the white is in dollars.

This was the most recent graphic I could find, but I assume that the divergence of price lines has only widened since 2005.

[hay rick]

1. divergence continues

Your last data point appears to be 3/05. Dollar hit a trough, around 0.74 euros around 1/05. It was closer to 0.77 in 3/05. The dollar rallied to around 0.85 by 11/05. It has been tanking ever since and is now at 0.6755.

Yes the price lines continue to diverge and yes, the weak dollar is one reason for higher gas prices. Importing oil hurts.

[El Pinko]

2. morning kick

nt

[ThomWV]

3. And there is nothing on the horizon that will reverse the trend

I have been pointint this out for months, but its a lot deeper than that. All you need do to determine if the price we pay is gouging or the legitimate product of world-wide demand is go look for shortages. If you can not find any shortages it becomes very difficult to justify price increases. You seen any gas line lately?

[Ganja Ninja]

4. I thought crude was $100 a barrel?

Shouldn't that white line be off the chart?

Oh sorry my bad. That's 2005 pricing.

[The Stranger]

5. Yes, they have intentionally devalued the dollar.

And soon we will have stagflation.

[legin]

6. Good post El Pinko

There is another question that has been bothering me too.

If the u.s. stock market is priced in Dollars, doesn't devaluing the currency make that go up too ?

[El Pinko]

7. Another excellent point I hadn't considered.

The dollar hzs lost a big chunk of its value vs. all other currencies.

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It amazes me there's so little concern about it...