Gold Oil Dollar Euro crGO @ EarningCharts.NET

 click here for start page  EarningCharts.NETCorrelations    crGODM-correlations turned upside down during german reunification 


   correlations    [«]      [ Gold ]  [ $ / € ]  [ Oil / $ ]  [ Yields ]      [»]      correlations

 Gold / $
  2. Jan 2000 . . . . . . . . . . . . . . . . . . . . . . . . . [ scroll down ] . [ end ]

    After Bretton Woods Fixed Correlations

When president Nixon ended the system of fixed commodity prices, the result was not an unregularly floating of commodity and cur­rency prices but a system of fixed correlations of commodity prices instead, two of which are discussed here. We think that there are more such unknown ,hidden' correlations which altogether comple-
tely determine the price fluctuations of commodities, currencies, interest rates and - even stock prices. The two correlations we know are the well-known relationship of the gold price to the Dollar/DM cross currency rate and the ,Saudi connection', which relates oil, priced in gold as currency, to Dollar/DM (now Euro). At the moment three variables, gold, dollar, euro determine the fourth one - oil. It is too expensive. This is good for the oil-producing countries but bad for the economies of the ,no haves' in Europe and East Asia.
 www. EarningCharts .NET 
 Oil / $
 2. Jan 2000 . . . [ scroll up ] . [ start ]

       The Search for More Correlations

We are looking for more correlations, hopefully including the main interest rates. Note that we are not looking for trivial correlations, which everybody knows. For instance that between the earnings of

companies to their stock prices, or that between inflation to interest rates. The correlations we are looking for must be independent, a concept which resembles that of ,linear independence' in mathe­matics. They are typically unexplainable as the two ones above, except there is a complete mathematical theory of the capital mar­kets. Then they play the role of empirical laws in physics, which later may be explained by a full theory.

      correlations   [«]    [ start ]  [ Gold ]  [ $ / € ]  [ Oil / $ ]  [ Yields ]    [»]    correlations
your ad