Loading ...The Dopey/Dollar creates dopey prices. The Dopey prices cause producers and consumers to change their production and consumption habits. Distorted and altered supply and demand forces, generally take hold at the end of the trend. Backlash. For recent example, the 72 Dopey/Dollar index low drove Oil up to $145/bbl.
The high priced oil caused over production, for years, with consumers cutting back consumption at the same time, BECAUSE of the high price, leading to an over supply glut and low prices of today.
Avg oil price before gold de-peg in 1970 $3.39/bbl. After de-peg, Dopey/Dollar dropped, and by 1980 the avg for that year was $37.42 a WOPPING 1003% rise in 10 years. All thru the 1970s people were cutting back. Kerosene heaters, wood burning stoves, gas miser cars etc etc.
From the high of 1980 $37.42, to the glut low of 1986, six years, Oil dropped 61% to $14.44. The gov’t media made everybody think OIL was the problem, and conservation was needed. In reality the unstable Dollar value was the problem.
What is written above you will never see in the gov’t media. They always without fail, point the people in the exact wrong direction. Unfortunately for producers of anything are always in a feast or famine mode. Mostly in the famine mode until shortages arise and abruptly higher prices, the market throws them a bone. Farmers too.
Dopey/Dollar chart, shows no stability: http://www.mrci.com/pdf/dx.pdf
Look how things started getting haywire after 9/11/01. http://www.mrci.com/pdf/cl.pdf
Note the loss of control Copper after 2004: http://www.mrci.com/pdf/hg.pdf