The Real Price of Oil, Dollar and Gold

[hans]

U.S. dollar and the price per ounce of gold. It highlights a fact that probably makes some folks at the Federal Reserve very nervous.

This graph makes it easier to understand:

The bottom purple line is the price of a barrel of crude oil per ounce of gold (if you wanted to use gold to pay for a barrel of oil). As you can see, that line is stable, and has been for the entirety of the graph, which is about 7 years.
The top two lines are the price of oil in relation to currency (blue is the Dollar and the red is the Euro). Those lines show that the cost of oil has been going up in relation to currency only. What this chart makes obvious is that the value of oil has not been increasing in real terms, currency has just been decreasing in value.

To put it another way, if the US Dollar were still based on gold (as it was until Nixon eliminated the Bretton Woods system in 1971), then the price of oil would be just as stable as that purple line in the chart is.

So oil is worth the same, and the US dollar is just worth less. Maybe we need to shift our focus away from war and drilling; and towards a better economic policy at home.

 

[itsnotme90]

A new system is on the way next year after june 2012 & it will be completely new. Can someone ask ECB how they bailing out spain & italy by buying their bonds coz they only have 10 billion in reserve capital so that means they are gonna print money so whats that rubbish that they r living luxuxry life after paying us printed money & we are giving them real commodities. We muslim countries can turn this table around & we can make them work hard & we can enjoy as we produce most of the real commodities & they only produce manufacturing products.

 

[habib22]

Thanks for fraud info and try to creat a false justification of high price , that in fact the price is low but stupid no one have gold every country has Dollars , may be you forget that we live in 2011 not in 2011 BC when they might have gold to trade , what a nice try to justify blood suckers. who are sucking blood of poor peoples on the name of high oil price when every one know that oil is GOD gift and they do not make it and get it for free.

 

[Bombaybuz]

No matter what you do if its interest base capitalism then this result was know to many people for decades... no matter what policy you make end of the day all the cream will be to the banker... they will leave this much with you so that they can milk you next day... no wonder creator kept Ribba (interest) in top of his haram list ... and a brother said soon we muslims will enjoy the perk but i'll say for muslims there is no enjoyment on this planet... for that we have tio wait till we enter Jannah ...here as Iqbal said.

WAQT A FURSAAT HAI KAHAN ?? KAAM ABHI BAKI HAI
NOOR A TOHEED KA EETMAAAM ABHI BAAAKI HAI.

 

[crankthskunk]

A new system is on the way next year after june 2012 & it will be completely new. Can someone ask ECB how they bailing out spain & italy by buying their bonds coz they only have 10 billion in reserve capital so that means they are gonna print money so whats that rubbish that they r living luxuxry life after paying us printed money & we are giving them real commodities. We muslim countries can turn this table around & we can make them work hard & we can enjoy as we produce most of the real commodities & they only produce manufacturing products.

Don't worry this had been happening for decades, some people have woken up and some are still sleeping.
Look at the dollar, completely phantom money not supported by anything, but the promise written on the face of it.

What if all the people holding the dollars start to demand as per the promise on the face of it. USA would pay by what means? What commodity? What valuable?

Same goes for all other currencies, if demanded to fulfil the promise written on the Currency notes, no Government in the world would be able to pay its liabilities. Remember currency notes are state's responsibilities or liabilities.

But how many people realise it that they are not holding money but a promise for a payment.[hilar][hilar][hilar]