About Piponomics

Piponomics Author

Economics play a huge role in the foreign exchange market. I enjoy looking at economic trends and trying to see how it affect currencies and life in general. I will post my thoughts and observations here. I'm throwing macroeconomics, forex trading, pop culture, and everyday life into a pot and hopefully the final product are lessons that are easy for you to consume.

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March 2006

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Oil is the new black Crack

Some people call oil black gold. I call it black crack. One can live without gold, but if you're a crack addict, you can't live without yo crack yo.

You wonder why oil cost so freakin' much? Thar chart from uh "Chart of the Day" shows why oil will probably be never cheap again. It shows the four biggest oil "addicts" in the world. Everybody is pretty much is hooked but if you look closely, it's pretty obvious who is biggest addict is. The United States of America off course. The closest oil fiend is China who might even dethrone US in the future.

This chart shows the relationship between the price of crack err oil versus the US dollar. The dollar is flipped upside down so the relationship is inverse. All this means is when oil price rises, the dollar weakens. And vice versa.

But does US seem to care about the strength of their currency? It doesn't seem like it. As long as they get their fix, it's all gravy baby.

The new crack dealers such as the Middle East nations along with Canada are loving it. Maybe next time I'll show the relationship between black crack prices and the crack dealer and the crack addict aka USD/CAD.

This chart shows the relationship between the price of crack err oil versus the US dollar. The dollar is flipped upside down so the relationship is inverse. All this means is when oil price rises, the dollar weakens. And vice versa.

But does US seem to care about the strength of their currency? It doesn't seem like it. As long as they get their fix, it's all gravy baby.

The new crack dealers such as the Middle East nations along with Canada are loving it. Maybe next time I'll show the relationship between black crack prices and the crack dealer and the crack addict aka USD/CAD.

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