Posted on 11/02/2022 9:29:54 AM PDT by SeekAndFind
Dollars aren't worthless, you can buy all sorts of things with dollars! Give me your dollars and I'll show you!
When that happens ping me!
Paying $100,000 / oz is a great way to transfer the wealth of the United States to India, China and Russia. I'm sure they'll appreciate it!
Amazingly enough: government got exponentially larger. Government officials were suddenly able to command massive purchasing power by pressing buttons on a screen, and they passed that purchasing power to favoured corporate allies.
The dollar depreciated massively. People close to the currency spigot made out like bandits, but the middle class was hollowed-out.
This collapse in purchasing power was cushioned by very real improvements in purchasing power due to technology (e.g. compare a 1973 mobile phone to today's models).
But check today's prices for things people need, as opposed to what they want. For instance: food and energy. Nixon did you no favours. And when the dollar finally crashes to zero many will curse his name.
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Once the dollar is no longer backed by demand for Saudi oil, it needs to be backed by something. Otherwise no-one will accept it except at gunpoint.
Of course: 'at gunpoint' is kind of the current basis of the dollar, but that's another issue.
But moving from monetary theory to reality: no matter what wise things we say about gold on this thread: government won't end up backing the dollar with anything.
They will print the dollar to death because the ability to get something for nothing has been and remains the core of U.S. government policy since at least Nixon.
This thread is really about what FReepers and other private citizens will do.
Will they buy some precious metals and preserve their purchasing power? Or will they do nothing and be shocked and suprised when the government wipes out everything they have?
No it hasn't. We've had a few periods of modest inflation since the end of gold standard and mostly no inflation, but nothing major by international standards. Things have mostly been... fine? 9% inflation isn't great (Congress should stop spending money!) but it's definitely not Germany in the 1920s.
You should understand: the price of Gold in dollars is going to be considerably more than $100,000 per oz unless the dollar is backed by Gold.
Which, as discussed, it won't ever be because the theft just will not stop until the dollar goes to zero. Because the absolute best way to transfer (steal) the wealth of the United states is to print dollars.
The price of Gold in 1923 Weimar marks and Zimbabwean dollars is infinite. You literally cannot buy anything with them, let alone Gold. If they had been backed by Gold, they would still be around.
You are at 18% price inflation now, which approximates to Germany in 1921 .
The time to buy Gold and Silver is before you get to 1922 and (yikes) 1923.
When three Pennies used to buy what a dollar does now the dollar is worthless.
You are just not getting it are you?
(Stimulating thread guys. Bed time for me).
Between May of 1921 and May 1922, Germany experienced 634.6% inflation. Also, inflation isn't at 18% in the US. You look silly.
I don’t think printing paper is all that different. It might take awhile but printing paper money will get us the $100,000/ oz in no time.
Inflation IS at 18% in the US.
Until you understand this, you can have no comprehension of economic reality in the US.
The official CPI is derived from carefully massaged Government figures. It is designed for consumption by the uncritical and to protect the government from index-linked obligations.
The official method of tracking Consumer prices has changed since 1980 with the deliberate intention of understating inflation.
If CPI is tracked using the same method that was used in 1980, the inflation rate is 18%.
Shadowstats.com maintains a record of CPI calculated with the 1980-method.
Go to the Shadowstats front page. Scroll down to the bottom chart. Read off the number for the end of 2023.
I highly recommend reading through the ShadowStats public comment on inflation measurement.
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The same chart that shows 18% inflation can be used to calculate a 10 yr moving average of year-on-year inflation of about 12%.
Compare this with the 10 yr average shown on this page. This will give you a stab at the 'which year in 1920's Germany are we in' metric. 1920? 1921? It's a dense abscissa and a steep curve, so you tell me.
Of course: the 'which year in 1920's Germany are we in' metric can only be of rhetorical use. The cases are not the same.
The US isn't flooding its own country with physical printed fiat: it has flooded the whole world with digital fiat.
We have never in all history seen an event like the upcoming American hyperinflation. Timing cues taken from the Papiermark are probably not meaningful. I imagine that - due to the speed of electronic communication - the collapse in the dollar will be far more sudden and devastating.
I agree! Especially since no one is preparing the citizen for the collapse - to the contrary, painting over the warning signs with the usual 'Nothing To See Here' balderdash . . . insuring a double hard consequence for those unprepared.
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