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29 comments on Oil Prices around the World: Do Exchange Rates Matter?
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29 comments on Oil Prices around the World: Do Exchange Rates Matter?
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GAIA Host Collective
The thing that confuses what oil is doing relative to other real assets is this variable measure we use, paper money. If we all used a stable currency then we would have a clearer picture, but even gold is not completely stable because it ebbs and flows given the confidence or lack thereof in the various depreciating national or supranational debt instruments we call money, and it is somewhat controlled by the coordinated efforts of the government sponsored central banks.
Perhaps the one of the better way to see if oil is becoming more expensive relative to other real assets would be to compare it to a commodity index. You can be sure that until there is a financial collapse, all the currencies will depreciate because they are all being expanded, just at different rates at different times. If I had to pick one measure out of those you presented, I would pick gold or one of the currencies of the remaining countries which produce oil in excess of local demand.
Plunder and control imposed by force is the trademark of government. This is why it must be severely limited to insure maximum freedom.
If you go to this address:
http://stockcharts.com/h-sc/ui
and use the symbols $wtic:$crb to create a chart (which you then need to adjust with different attributes to get it expanded for the last three years) it gives you and idea of what West Texas Crude cost in terms of the Commodity Research Bureau index. Clearly oil is becoming more expensive in relation to other commodities irrespective of the expanding and contracting measuring stick of fiat money.
Sorry I could not figure out how to get the chart to just pop up in this comment (lack of computer skills).