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Is oil now decoupled from the dollar?

General discussions of the systemic, societal and civilisational effects of depletion.

Is oil now decoupled from the dollar?

Unread postby 2cher » Fri 11 Feb 2011, 16:53:34

Just curious I don't claim to know very much about finance or the markets.

I just noticed today that the dollar fell in value again and at the same time the price of oil dropped. I would think that with the dollar falling that the price of oil would go up if oil was still priced in dollars.

If I am completely stupid and off base please tell me what I am seeing wrong.
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Re: Is oil now decoupled from the dollar?

Unread postby Pops » Fri 11 Feb 2011, 17:07:58

If you're just curious then I'm just guessing!

The problems in Egypt added a risk premium (because of the Suez canal) and the gamblers think that risk is easing. Nothing to do with the dollar.
The legitimate object of government, is to do for a community of people, whatever they need to have done, but can not do, at all, or can not, so well do, for themselves -- in their separate, and individual capacities.
-- Abraham Lincoln, Fragment on Government (July 1, 1854)
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Re: Is oil now decoupled from the dollar?

Unread postby SeaGypsy » Fri 11 Feb 2011, 19:38:13

Yep, the downward trend inevitably caused by Ben's money machine is inevitable, yet all over the world the $USD is revered like no other piece of paper ever has been. I bet even the money printers are amazed how slow inflation has been, given the pace of the printing press; my guess is about half of what it would be without the faith component.
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