Showing posts with label us dollar. Show all posts
Showing posts with label us dollar. Show all posts

Wednesday, November 9, 2011

Prices NEVER Go Up!

It drives me crazy everytime I hear a newscaster, financial analyst, or even an average consumer  complain about how prices of food, gas, appliances, etc., are going up. Especially when they then launch into an ill-considered rage at the "fat-cat oil barrons" or the "greedy corporations" or the evil 1%". As a result, I'm going to say this one time only. Prices NEVER go up! The real prices on the everyday items your grandmother and father bought cost the same as they did back in the day. After all, how could prices increase? I mean, an orange in 1963 is an orange today, why would you pay more for it now then you did back then? So, if prices haven't gone up, then what has changed? The value of your money has GONE DOWN.

In 1964 President Johnson announced that starting in 1965 US coins (dimes, quarters, and halves) would no longer be minted from 90% silver, but would be switching to a nickel copper composition. The only exception was to be the 1965 - 1970 Kennedy half which would be lowered to 40% silver. FDR had previously taken gold money out of the hands of US citizens in 1933. Nixon terminated the last connection the US Dollar had to Gold (and sound money) when he terminated the Bretton Woods arrangement in 1971. Now the US was free to print money to its hearts content without the necessity of having something concrete backing the paper money. As the money supply began to increase inflation took off in the late 60's and never looked back. Today you would need over $7.50 to buy what $1.00 would've bought you in 1964!

But wait, doesn't my last sentence above contradict my premise about unchanging real product pricing? If you need $7.50 to buy in 2011 what $1.00 purchased in 1964, doesn't that mean prices did indeed rise? The short answer is basically, yes and no. Yes, prices increased because we use paper funny money and coin slugs today instead of real silver and gold money. However, in silver and gold money prices have remained remarkably steady since the early 1960's! See below:

1964 - One loaf of white bread could be bought for a silver 1964 dime.
2011 - You can buy a loaf of white bread today with that exact same silver dime.

1964 - One nicely tailored men's suit $50.00
2011 - If you saved your money in silver coins you'd have $1250 to buy that suit!

1964 - One gallon of gas cost $0.30
2011 - Three silver dimes would give you $7.50 towards that gallon gas! Wow, change too!

1964 - The cost of $10 worth of 90% silver quarters was...well...$10.
2011 - Go on eBay and see for yourself. Right now you'd have to pony up $250 in funny money to get ten bucks of real silvery money!

So you see, assuming you saved the last real money (90% silver coins) we had in 1964 you'd find that either your buying power would be the same, or that it actually improved!

Hmm, maybe I am wrong. Prices aren't just stable over the last 5 decades, they've gone down!

Bottom Line: Politicians and Big Banking interests are expanding our money supply recklessly to serve their own agendas and enrich themselves. Eventually, the average Joe America will lose everything as the US Dollar inflates to worthlessness. Be aware of their duplicity! Don't complain to the store clerk or the check out worker like a drone about rising prices. Instead, rebel (legally) against a tyrannical government that is debasing the once mighty and sound US dollar and ruining the savings and buying power of a Nation. BUY SILVER & GOLD NOW!

Rick



GoldSilver.com - Buy Gold & Silver




Sunday, April 3, 2011

Monopoly Money vs. US Dollars

Everyone has played the game Monopoly at one time or another on a rainy day. A key feature of the game is the paper money used to buy everything from properties to railroads and pay rents and luxury taxes. In the "real world" we use the US Dollar for the very same purposes. I thought it would be interesting to compare and contrast the two paper currencies to see just how eerily similar they are to one another.

    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):

    Rick

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