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> Remember, you still need US dollars to buy oil. Good thing, then, that gold is very easy to convert into US dollars. "the fluctuating value of the dollar ma
by mseebach 14y ago
> Remember, you still need US dollars to buy oil.
Good thing, then, that gold is very easy to convert into US dollars.
"the fluctuating value of the dollar makes it very hard to gauge whether oil prices themselves are rising or falling… Oil today at 2 grams, is about the same as it was in the early 1950s; but if you measure the price in US dollars, you would get the impression that it is about 30 times more expensive today!"
http://pricedingold.com/crude-oil/ http://pricedingold.com/crude-oil/
- bluedanieru 14y agoHow many Big Macs for a barrel? Honest question.
- mseebach 14y agoSure, show me anyone who will consistently convert big macs to US dollars, and I will happily show you the division button on your calculator. In case you need it spelled out, there is, and has always been, a liquid market for the conversion of gold into US dollars. There isn't one for converting Big Macs into anything. They're worthless for trading the second they cross the counter at McDonald's. For someone lashing out at "illiterate college students playing at economics", you're not exactly showing off your deep insight.
- wintersFright 14y agoHe is referring to the Big Mac Index - a measure of purchasing power parity http://en.wikipedia.org/wiki/Big_Mac_Index http://en.wikipedia.org/wiki/Big_Mac_Index
- bluedanieru 14y agoAs already noted, I was referring to the Big Mac index. Continue playing at economics though, sorry for interrupting.
- mseebach 14y agoIn that case it wasn't a honest question. Continue trolling, sorry for interrupting.