Gold, Oil, Euro, Swiss Franc Reach New Records
Gold rise above the key $1,000 per ounce level while the euro rise above $1.55, just as I had predicted (see here and here). In addition, oil rose above $110 per barrel. The next key levels to be broken is for the yen to rise above 1 cent (i.e. for a dollar to cost less than 100 yen, which it actually briefly did earlier today) and for the Swiss franc to reach parity with the dollar and then surpass it in value.
posted by stefankarlsson at 4:04 PM
1 Comments:
According to the theory of Purchasing Power Parity and based on Big Mac prices, the US dollar is still overvalued against the yen. $3,41 and 280 yen gives a macqvilibrium at about 82 US cents per 100 yen.
In real Big Mac-adjusted terms the dollar has RISEN against Sterling since March 2007.
Do not be surprised if the dollar looses another 15%.
Gold will reach $1100 and $1200 just like that.
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