Wednesday, July 13, 2011
The cost of a suit and the value of a dollar
One ounce of gold in 1900 would buy you one or maybe two really nice suits. One Ounce of gold today would buy you one or two nice suits. So when you remove the dollar amounts gold still buys you what it did 100 plus years ago. Try the same thing except this time see what a dollar bought you 100 years ago and then today. The question was asked what good would the gold standard do in the age of big dollar cyber transactions. A gold standard would only insure that the dollars being used in cyber space or over the counter had real value. The true value of a dollar could not be manipulated in the same way or as easily as the “fiat paper” we use today if backed by gold. The only value the dollar has today is the good word of our government and the worlds belief in the US economy. Those two things are worth less every day while gold is just gold.
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J-Lo,
ReplyDeletethe Roman's Toga, with a high quality leather belt and leather sandals "cost" the same - one ounce of gold...the Romans cut the corners off of the gold and silver coins to inflate....jeez, this is nothing new...since the FED was created in 1913, nearly 100 years ago, the "purchasing" power of the USD has been reduce by 95%...
The Bernank is full off shit...
Wes