Thursday, February 16, 2012

The Dollar Versus Gold and Oil Since 1974

Notice how the three tracked together until the 90′s when the dollar was being artificially inflated. If the Fed had been doing its job the dollar would have continued to track with oil and gold. Now that the dollar is being purposely devalued, the world is going to be forced to trade oil in some new currency or gold. Just follow the green line into the future and you can find the ruins of what was once the United States of America.

The Dollar, Gold and Oil Since 1974

Compares the movement in the real dollar index with gold and oil prices since 1974. The oil and gold series are adjusted for CPI inflation and all series are smoothed with a 12-month moving average. The real dollar index is adjusted for the relevant trading partners own currency inflation rates and shows a distinctly different picture than the nominal version of the index.

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