[Southack]

"It doesn't work real well. Foreign central banks have used dollar reserves *precisely* becasue they have been a relative store of value."

I don't see it. The Dollar has declined since 1930. Real estate has increased in value since 1930. If central banks were about storing wealth instead of manipulating Markets, you'd think that they'd be able to afford managers clever enough to invest in appreciating real estate instead of depreciating cash...

[jpsb]

"I don't see it. The Dollar has declined since 1930"

yes seems inflation always erodes the value of money but this is interesting

$2.14 in the year 1969 has the same "purchase power" as $1 in the year 1929.

$5.02 in the year 2003 has the same "purchase power" as $1 in the year 1969.

http://eh.net/hmit/ppowerusd/

Looks to me like our money started taking a real noise dive since 1969 (1971). Also note that the lastest info is for 2003 but the dollar fall is really a 2004+ thing.

Just for grins

$20.96 in the year 2003 has the same "purchase power" as $1 in the year 1776.