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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: Archie Meeties who wrote (144962)	2/11/2011 3:40:59 AM
From: teevee	2 Recommendations Respond to of 206359

Archie, I believe you have been confusing apples with oranges, pears, grapefruit, almonds, peanuts, tomatoes and the list goes on....comparing dollars to other currencies might be good for currency trading, but from a consumer perspective, it is useless everywhere else. For example, considering the dollar as THE medium of exchange, or if you like, coin of the realm, depending on where you are located, when considering the purchase of real estate, the value of the dollar has appreciated by as much as 50% in just 3 years. Some people call this deflation. When buying copper today and measured against 2000 copper prices, the "value" of a dollar has dropped by 75%. Copper buyers consider that as inflation. My property tax increases an average of about 10%/year compounded. Obviously, a dollar pays less tax this year than last year:-(. When you consider that the cost of gasoline after the first oil shock in the early 70's represented a larger portion of disposable income than it does today, the only true conclusion is that gov'ts could get away with increasing the money supply faster than suppliers could raise prices because supply outstripped demand. With the increase in commodity demand and consumption by the BRIC countries, the game of increasing the money supply no longer solves that problem of inflation-in fact, increasing the money supply just makes the problem worse. It is not just poor countries who import grains that are facing tough times ahead.