Here is an illustration of fiat's invisible theft in broad daylight.
In 1913, a $20 note was worth about 1oz of Gold. Either would buy: 100# chicken, 1000 eggs, or 133# beef.
In 2010, a $20 note would buy: 15# chicken, 105 eggs, 5# beef.
In 2010, 1oz of Gold would buy: 732# chicken, 6405 eggs, 306# beef.
Yet, almost NOBODY has figured out exactly what 'happened' to the purchasing power of their "money"...
In a twist on "the beatings will continue until morale improves" we should say "the theft will continue until the purchasing power is gone."
Thank you Federal Reserve Act! Thank you Richard "Dick" Nixon!
Sunday 8 July 2012
Daylight robbery....................from Rico
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1 comment:
To be sure, inflation is a real problem that our government doesn't want to admit to.
On the other hand, gold itself is an industrial commodity whose value fluctuates wildly from year to year, so I'm not sure it's the best benchmark.
One of the reasons, for example, that an ounce of gold buys more food today than it did in 1913, is that currently there's a gold-buying panic that has created what I personally see as a gold price bubble that could collapse at any moment. Another of those reasons is technological: advances in agricultural technology have made those chickens and eggs and sides of beef easier to produce, requiring less human labor and fewer resources, than they did in 1913.
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