Sunday, April 17, 2011
Thursday, April 14, 2011
Saturday, April 9, 2011
First Class Stamp $0.44 - 0.01 oz.
Gallon Regular Gas $3.75 - 0.09 oz.
Dozen Eggs $3.00 - 0.07 oz.
Loaf White Bread $2.78 - 0.07 oz.
It's easy to see from these two pricing tables that you need a lot more silver to buy everyday items in 2011 than was required to purchase the same products at the peak of the 1980 silver bubble. For example, you could purchase an average new home in 1980 for only 1528 ounces of silver, but you'll need 4929 ounces to close on that same house today!
Finally, I'd like to see how high silver would have to rise in price before it could buy the same amount of products it did in 1980. To determine the 2011 dollar adjusted figures I'll divide the current 2011 dollar product costs by the number of silver ounces required in the 1980 peak. See below:
Avg. New Home - $132 per ounce silver
Median Household Income - $147 oz.
First Class Stamp - $147 oz.
Gallon Regular Gas - $150 oz.
Dozen Eggs - $167 oz.
Loaf White Bread - $278 oz!
The incredible numbers above show that silver will have to rise to between $132 to $167 per ounce to arrive at pricing levels in 2011 dollars that proved to be overheated or bubble-ridden in 1980! In addition, if you want to eat bread again like we did in 1980, you're going to need silver at $278 per ounce! So, our tentative figure of $134 per ounce for a silver top is pretty right on the money.
Given all the information above, I'd say we have quite aways to go with silver at about $41 an ounce before we reach any frothy action! For my part, don't even wake me until silver has exceeded $100 per ounce!Time is running out fast! Hyperinflation seems unavoidable as fiat paper money is being printed as fast as the US presses can run. To protect your wealth and your family, buy gold and silver now from these top companies, APMEX Gold and Silver and Silver American Eagles.
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Thursday, April 7, 2011
Sunday, April 3, 2011
US Dollar - A paper fiat currency unbacked by any commodity like silver or gold. Backed solely by the "good faith and credit of the United States" government.
Monopoly Money - A paper fiat currency backed by the good faith and credit of Parker Brothers.
US Dollar - accepted on some level in most of the 195 countries of the world. The world's reserve currency...for now at least.
Monopoly Money - Played with by people in 103 countries.
US Dollar - About $829 billion dollars in circulation.
Monopoly Money - About $3.8 billion dollars in 250 million games sold.
US Dollar - The Federal Reserve Notes first issued in 1913 have fallen victim to inflation in the last century and have lost 97% of their buying power.
Monopoly Money - In the Monopoly Here and Now edition all dollar values are multiplied by 10,000, so a player collects $2,000,000 for passing go instead of $200. Another way of looking at this game change is that the Monopoly Money has lost much of its value as well.
US Dollar - When the Fed wants to tinker with the economy it just prints more money and floods the market with devalued dollars sparking inflation, and perhaps someday hyperinflation.
Monopoly Money - When Parker Brothers needs more money for their games they just print more.
US Dollar - All paper fiat currencies backed by nothing have eventually lost value through inflation. Many have been hit by hyperinflation and lost all buying power, becoming worthless pieces of printed paper. The US Dollar and the current policies of the Fed seem custom-designed to hurry the US Dollar to this same ignominious fate.
Monopoly Money - The game money only has value while the game is in play. When the game is complete, the money reverts to its inherent worthless status as pieces of colored paper valued by none.
Lastly, I'm reminded of a time that my brother and sister decided to play Monopoly out of sheer boredom. To try to make the board game more interesting, we decided to start the game with 4 times as much money as the rules typically called for. In addition, we decided to mimic real life and allow for everyone playing to bid against one another for each and every property sold. Without meaning to, we simulated an inflated economy littered with too much fiat paper money. We didn't end up with any additional property of course, as there was a finite number of properties available in the game (as in the real world). Instead, we only ended up paying 4x as much for Boardwalk, Marvin Gardens, and those darned railroads as we normally would've using the standard game rules!
Time is running out fast! Hyperinflation seems unavoidable as fiat paper money is being printed as fast as the US presses can run. To protect your wealth and your family, buy gold and silver now from these top companies (below):
CLICK ADS BELOW FOR FREE DISCOUNT!