– November 30, 2010

“The dance of the dollar counts — and it counts a lot. With few exceptions, when the dollar weakens against the euro, commodity prices soar, and when the dollar soars against the euro, commodity prices plunge. Every commodity trader knows the importance of the dance of the dollar. Indeed, commodity traders know that, when the value of the dollar falls, the nominal dollar prices of internationally traded commodities — like gold, rice, corn and oil — must increase because more dollars are required to purchase the same quantity of any commodity.” Read more.

“The Dance of the Dollar”
Steve Hanke
Via the Cato Institute

Image by Francesco Marino / FreeDigitalPhotos.net.


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