[Jason_b]

Oh that is slick. We can buy far more computing power now for a dollar than we could in 1970. Some would call that deflation, and I have a feeling that you would conveniently pick this sort of "good" or "service" to prove to me it was deflation the entire time. As it is with advances in computer technology, you can prove NOW that the dollar has gained purchasing power since 1970 and not wait 20 years.

I am thinking more along the lines of basic things like postage, a loaf of bread. A loaf of bread used to cost 8 cents. Now it is around $1.50 to $2.00. Same loaf. There was a time when you could buy a nice house from Sears for $6,000. Entry level houses in my area just touched $300,000.

Some sectors are deflating now, but years or decades hence, after numerous "stimulus" programs and continued deficit spending, the end result will be price inflation and destruction of the purchasing power of the paper dollar.

[Poohbah]

Oh that is slick. We can buy far more computing power now for a dollar than we could in 1970. Some would call that deflation, and I have a feeling that you would conveniently pick this sort of "good" or "service" to prove to me it was deflation the entire time. As it is with advances in computer technology, you can prove NOW that the dollar has gained purchasing power since 1970 and not wait 20 years.

Sorry, you demanded the comparison be over the next 20 years. You kinda forfeited your right to determine the nature of the comparison.

And, BTW...the REAL determinant for the value of the dollar takes into account what the prevailing wage is, and then measures the cost of goods in relation to the amount of labor required to afford them...