Pricey Liquids

PRICEY LIQUIDS
By Eric J. Fry

“That’ll be $64,” grunted the barman at Smith & Wollensky’s
last night, after placing a Budweiser and two glasses of
wine on the bar.

“Really?” your editor replied, as he reached very slowly
for his wallet “Only $64?”

Daily Reckoning
Aren’t $64 cocktails as much a picture of dollar weakness
as $56 crude oil?
…

The commodity bull market and the dollar bear market are
one and the same. As the nearby chart clearly shows, the
recent price histories of the CRB Index and the euro are as
entwined as young lovers. They are rising together because
the dollar is falling against both of them.
…

Or to express this phenomenon from another perspective: The
price of crude oil in dollars may have reached a new record
high, but the price of crude in euros remains well below
its record high
…

OPEC is irrelevant,” harrumphs Kenneth Deffeyes, professor
emeritus of petroleum geology at Princeton University.
….