There is no inflation, the Money is worth less
Posted by Signofthedollar 11 years, 8 months ago to Economics
Interesting fact. Gas is now at roughly at $4.00 gallon. In the late fifties early sixties gas was 25 cents a gallon. This was pointed out to me by my 92 year old mother, bless her. She wanted to know why. Well here is the truth. At time when gas was 25 cents the coin that you used to paid for the gas was made of silver. Today what we have for money is a glorified check. (note they are all signed). A silver quarter is worth on the bullion market today around $4. So in reality the prices have stayed the same. The money is worth less.
PS: At the time of silver and gold backed money the bills said "payable to the bearer on demand one dollar in silver" or gold depending on the denomination.
PS: At the time of silver and gold backed money the bills said "payable to the bearer on demand one dollar in silver" or gold depending on the denomination.
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- 1Posted by vicensi15 11 years, 8 months agoThat's very interesting, I never thought about inflation and money being worth less as being different things. thanks for the new perspective!| Mark as read | Best of... | Permalink
- 2Posted by Signofthedollar 11 years, 8 months agoLets just hope that either we get back on a currency backed with silver or gold. Or we will all be waiting for those "checks" to bounce one day.| Mark as read | Parent | Best of... | Permalink
- 1Posted by mmm2m8r 11 years, 7 months agoMany, many things could be cheaper due to advances in productivity. Electricity, for example even with the common sense addition of pollution controls like scrubbers and precipitators that work and remove environmental contaminants. It has gone way down. Throwing CO2 in as false pollutant will erase all progress in efficiency. Besides, it's removal is impossible.| Mark as read | Parent | Best of... | Permalink
- 1Posted by Signofthedollar 11 years, 7 months agoYour right of course. However, with the money not being backed by gold or silver there is no way to have a objective place to stand on in terms of value. It would be difficult to know what the real value is and how it is changing, up or down.| Mark as read | Parent | Best of... | Permalink
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- 0Posted by $ MikeMarotta 10 years, 8 months agoThis was cute, a nice pun to make a cogent point. It does open the door to discussions of some technical issues. I will create anew post here in Economics on "Gold and Silver" to address some of those.| Mark as read | Best of... | Permalink
- 0Posted by $ jmlesniewski 11 years, 8 months agoForgive me for my ignorance, but what is the difference between inflation and money being worth less over time?| Mark as read | Best of... | Permalink
- 4Posted by Signofthedollar 11 years, 8 months agoEasy, when money was backed by silver and gold it had an intrinsic objective value. Today our money is backed by good will and its value is dependent on what the market will bear. Looking from a "hard" currency ( the silver coin) to the unbacked currency the price is the same.| Mark as read | Parent | Best of... | Permalink
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