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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory
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To: jackjc who wrote (69854)9/16/2006 11:46:49 AM
From: Wyätt Gwyön  Read Replies (3) of 110194
 
US dollar purchasing power fall from adjusted
1.00 at birth to .06 today.

a typical goldbug cliche--unfortunately it is a misguided oversimplification which leads to an incorrect conclusion. it is silly to look at nominal figures over time without context. you might conclude that people today are 94% poorer than when you were born.

in fact US nominal income over the past century has risen much more than the dollar has fallen, so people are much richer today than they were a century ago thanks to increased real income.

1 dollar stuck in a mattress for 100 years is still 1 dollar. but most people do not keep their money in mattresses for 100 years. the same dollar invested at the cash rate for a century is 57 dollars. back out inflation and the return is still positive, about 0.4% per year compounding.

it is amazing how haters of fiat currencies tend to overlook or be ignorant of this point. it really damages their credibility.
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