Hey Dude, where's my money?
As compared to 1998, the US dollar is now worth 23.7% as much in gold as then. Putting it another way, it would take $4.22 to buy the same amount of gold that $1.00 bought in 1998. To put this in historical perspective, it would have taken $7.52 in 1998 to buy what $1.00 would have bought in the 1960s when we were still on the gold standard. One dollar in 1969 would buy as much gold as $31.73 buys today.
So, what's the problem, you say? Prices today are still relatively reasonable, and growth of income covers the loss of buying power of the dollar. Besides, as technology advances, things just get relatively cheaper. And it is not the absolute value of money, but its relative value, its buying power that matters, right?
So, relatively speaking, how are we doing vs decadent Europe? In 1998, one dollar would buy .927 euros, but today it buys only .643 euros. Compared to the Euro, the dollar has lost 30.6% of its value.
As our government prints more money to pay for Bush wars and Obama "recoveries", do you think it might be possible that the value of a dollar may fall further, both absolutely and relatively against other currency? Unless we can force other countries to fire up their printing presses, we may be in for some real problems around the corner.
DocBrain has decided that it is passe to argue politics with those who believe in the socialization of the American dream. I believe that it is time for action that will either prove me right or wrong. If I am wrong, the smug on the left can rub my nose in it as I shine their shoes. If I am correct, I might occasionally toss a penny in your leftist tin cup as you beg on the corner.
I post this as a warning to the "yes we can" crowd, much in the same way that pharma companies, insurance companies, and even restaurants now have fine print. I don't want anyone to say "DocBrain did not warn me". If you have read this and believe it is important, you now have enough knowledge to begin the journey to save your money by betting on the producers of wealth and not on those who squander it.
So, what's the problem, you say? Prices today are still relatively reasonable, and growth of income covers the loss of buying power of the dollar. Besides, as technology advances, things just get relatively cheaper. And it is not the absolute value of money, but its relative value, its buying power that matters, right?
So, relatively speaking, how are we doing vs decadent Europe? In 1998, one dollar would buy .927 euros, but today it buys only .643 euros. Compared to the Euro, the dollar has lost 30.6% of its value.
As our government prints more money to pay for Bush wars and Obama "recoveries", do you think it might be possible that the value of a dollar may fall further, both absolutely and relatively against other currency? Unless we can force other countries to fire up their printing presses, we may be in for some real problems around the corner.
DocBrain has decided that it is passe to argue politics with those who believe in the socialization of the American dream. I believe that it is time for action that will either prove me right or wrong. If I am wrong, the smug on the left can rub my nose in it as I shine their shoes. If I am correct, I might occasionally toss a penny in your leftist tin cup as you beg on the corner.
I post this as a warning to the "yes we can" crowd, much in the same way that pharma companies, insurance companies, and even restaurants now have fine print. I don't want anyone to say "DocBrain did not warn me". If you have read this and believe it is important, you now have enough knowledge to begin the journey to save your money by betting on the producers of wealth and not on those who squander it.
posted by DocBrain at
4:24 AM
0 Comments:
Post a Comment
<< Home