Someone answer this one for me!

In 1969, a Monza sold for $2500. Gold was fixed at $35/oz. The median income in the US was $9400. So, an average car represented 27% of the median annual income and 71.4 oz of gold.

In 2009, a Toyota Corolla sells for about $15500. The dollar floats. The median income in the US is around $70000. Using the 1969 ratios, an average car should be about 0.27 x 70000 = $18,900, which is pretty close to what it was in 1969. So, the hour worked still buys the same amount of goods as it did in the past. However, if we look at gold, we see that the $18900 car represents only 18.9 oz of gold. Put another way, if you bought gold in 1969 and transferred it back into dollars in 2009, you could have bought a car for $71,400.

So, either gold is speculated at a higher price than it really is worth or the dollar is worth considerably less than it seems. In one scenario, the value of gold will fall dramatically, impacting those who speculate in gold. In the other scenario, the cost of goods will skyrocket as the dollar reaches balance with it's gold-based value, leading to hyperinflation.

What is reality?