Now tell me the Fed is not causing the current commodity crisis.

[Eugene]

All I see is two uncorrelated graphs that happen to be upward trending at the same time.

Try this instead:

http://tinyurl.com/6nccmd

[capeman]

"All I see is two uncorrelated graphs that happen to be upward trending at the same time."

 

Hehe!  That's called visual correlation.

I think you've got something there on the currency vs. commodity plot but why choose the Aussie USD cross?  The EURUSD or DX vs. DBC would likely give you what you want in Dollar decline vs. Commodity rise. 

That's helps prove the point of my plot since the Fed actions have directly caused the dollar decline.

[capeman]

"All I see is two uncorrelated graphs that happen to be upward trending at the same time."

 

Hehe!  That's called visual correlation.

I think you've got something there on the currency vs. commodity plot but why choose the Aussie USD cross?  The EURUSD or DX vs. DBC would likely give you what you want in Dollar decline vs. Commodity rise. 

That's helps prove the point of my plot since the Fed actions have directly caused the dollar decline.

[capeman]

"All I see is two uncorrelated graphs that happen to be upward trending at the same time."

 

Hehe!  That's called visual correlation.

I think you've got something there on the currency vs. commodity plot but why choose the Aussie USD cross?  The EURUSD or DX vs. DBC would likely give you what you want in Dollar decline vs. Commodity rise. 

That's helps prove the point of my plot since the Fed actions have directly caused the dollar decline.

[capeman]

"All I see is two uncorrelated graphs that happen to be upward trending at the same time."

 

Hehe!  That's called visual correlation.

I think you've got something there on the currency vs. commodity plot but why choose the Aussie USD cross?  The EURUSD or DX vs. DBC would likely give you what you want in Dollar decline vs. Commodity rise. 

That's helps prove the point of my plot since the Fed actions have directly caused the dollar decline.

[capeman]

"All I see is two uncorrelated graphs that happen to be upward trending at the same time."

 

Hehe!  That's called visual correlation.

I think you've got something there on the currency vs. commodity plot but why choose the Aussie USD cross?  The EURUSD or DX vs. DBC would likely give you what you want in Dollar decline vs. Commodity rise. 

That's helps prove the point of my plot since the Fed actions have directly caused the dollar decline.

[kewp]

It’s not a crisis if all your investments are in commodities!

[kewp]

It’s not a crisis if all your investments are in commodities!

[kewp]

It’s not a crisis if all your investments are in commodities!

[kewp]

It’s not a crisis if all your investments are in commodities!

[kewp]

It’s not a crisis if all your investments are in commodities!

[Eugene]

EURUSD does not correlate quite as well as AUDUSD, as you can test for yourself. So, it’s not just the dollar decline. Australia is a major producer of commodities and their population is relatively low so a lot of their stuff is exported.

There are at least three ways of thinking about it –

* Bank of Australia causes the appreciation of the Aussie, higher export prices translate into higher commodity prices around the world.
* commodity bubble drives up profits of Australian farmers, creating inflation, Bank of Australia is forced to appreciate their currency to combat inflation.
* the same speculators who created the commodity bubble also invest large amounts of money into AUD, thinking (for example) that a high-yield commodity-driven currency would better withstand current crisis than the dollar or the yen.

It’s not easy to distinguish cause and effect.

[Eugene]

EURUSD does not correlate quite as well as AUDUSD, as you can test for yourself. So, it’s not just the dollar decline. Australia is a major producer of commodities and their population is relatively low so a lot of their stuff is exported.

There are at least three ways of thinking about it –

* Bank of Australia causes the appreciation of the Aussie, higher export prices translate into higher commodity prices around the world.
* commodity bubble drives up profits of Australian farmers, creating inflation, Bank of Australia is forced to appreciate their currency to combat inflation.
* the same speculators who created the commodity bubble also invest large amounts of money into AUD, thinking (for example) that a high-yield commodity-driven currency would better withstand current crisis than the dollar or the yen.

It’s not easy to distinguish cause and effect.

[Eugene]

EURUSD does not correlate quite as well as AUDUSD, as you can test for yourself. So, it’s not just the dollar decline. Australia is a major producer of commodities and their population is relatively low so a lot of their stuff is exported.

There are at least three ways of thinking about it –

* Bank of Australia causes the appreciation of the Aussie, higher export prices translate into higher commodity prices around the world.
* commodity bubble drives up profits of Australian farmers, creating inflation, Bank of Australia is forced to appreciate their currency to combat inflation.
* the same speculators who created the commodity bubble also invest large amounts of money into AUD, thinking (for example) that a high-yield commodity-driven currency would better withstand current crisis than the dollar or the yen.

It’s not easy to distinguish cause and effect.

[Eugene]

EURUSD does not correlate quite as well as AUDUSD, as you can test for yourself. So, it’s not just the dollar decline. Australia is a major producer of commodities and their population is relatively low so a lot of their stuff is exported.

There are at least three ways of thinking about it –

* Bank of Australia causes the appreciation of the Aussie, higher export prices translate into higher commodity prices around the world.
* commodity bubble drives up profits of Australian farmers, creating inflation, Bank of Australia is forced to appreciate their currency to combat inflation.
* the same speculators who created the commodity bubble also invest large amounts of money into AUD, thinking (for example) that a high-yield commodity-driven currency would better withstand current crisis than the dollar or the yen.

It’s not easy to distinguish cause and effect.

[Author]

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