Posted on 03/10/2015 1:27:34 AM PDT by Oliviaforever
The dollar set fresh multiyear highs against the euro and the yen in Asian trade Tuesday, as market participants bet on the continuing divergence in monetary and economic conditions in the U.S., the eurozone and Japan.
(Excerpt) Read more at wsj.com ...
Well, crude oil should at least drop then.
There is a great upside to holding the reserve currency.
It was the fifth annual record in a row.
You mean in addition to getting suckers to buy all our debt?
Sigh, I wish I was going to Germany this year, instead of last year, I would’ve saved a lot of money. was in Berlin for the first time since 1976, could not believe the difference, loved it. I was moved to tears, when I was able to straddle the wall with my feet.
Sigh, I wish I was going to Germany this year, instead of last year, I would’ve saved a lot of money. was in Berlin for the first time since 1976, could not believe the difference, loved it. I was moved to tears, when I was able to straddle the wall with my feet.
I think the Federal Reserve Bank is doing most if not all of the debt buying now.
Yeah, like American-made products are more expensive for foreigners to buy.
OPEC Has Already Turned to the Euro
GoldMoney Alert
February 18, 2004
...The source for the euro exchange rate is the Federal Reserve, and I have calculated the euro's average exchange rate to the dollar for each year based on daily data.We can see from column (4) in the above table that in 2001, each barrel of imported crude oil cost $21.40 on average for that year. But by 2003 the average price of a barrel of crude oil had risen 26.0% to $26.97 per barrel. However, the important point is shown in column (6). Note that the price of crude oil in terms of euros is essentially unchanged throughout this 3-year period.
2001
As the dollar has fallen, the dollar price of crude oil has risen. But the euro price of crude oil remains essentially unchanged throughout this 3-year period. It does not seem logical that this result is pure coincidence. It is more likely the result of purposeful design, namely, that OPEC is mindful of the dollar's decline and increases the dollar price of its crude oil by an amount that offsets the loss in purchasing power OPEC's members would otherwise incur. In short, OPEC is protecting its purchasing power as the dollar declines.
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