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To: DannyTN
If you hoarded cash 80 years ago, you have lost a lot of purchasing power.

80 years ago, that cash would have been made out of gold or silver, and it has lost none of its purchasing power in that time. A silver quarter is still worth a gallon of gas. A gold coin is still worth a good men's suit.

You're talking about Federal Reserve Notes, not dollars. The problem is with Federal Reserve Notes, whose value can only go down. The problem isn't with cash. it's with the Federal Reserve.

The Fed sucks. The best way to cure the plague that is the central bankster is stab them in the heads with a pitchforks until they stop twitching.

But let's see if Crazy Ron can obviate that more intensive form of surgery.

166 posted on 12/12/2010 8:04:47 AM PST by InternetTuffGuy
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To: InternetTuffGuy
"A gold coin is still worth a good men's suit.

BS. A gold coin is curently worth 4 good men's suits. And 5 years ago a gold coin was barely worth the cheapest man's suit.

The stability purported for gold is not really there.

Over the long run, you can expect deflation with gold because the supply of gold does not grow as fast as the supply of goods in the economy. There are 5 billion oz of gold in the world. There are 6 billion people.

In the 1800's we had several depressions and one bout of hyper inflation during the gold rush.

Deflation is bad for the economy, because holding cash becomes better than investing in the economy.

167 posted on 12/12/2010 10:31:51 AM PST by DannyTN
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