Dollar Devaluation

Discussion in 'Bullion Investing' started by phubanks, Mar 9, 2010.

  1. phubanks

    phubanks Junior Member

    I meant 2008 (September 2008) with that ... not 2007
     
  2. Avatar

    Guest User Guest



    to hide this ad.
  3. phubanks

    phubanks Junior Member

  4. Cloudsweeper99

    Cloudsweeper99 Treasure Hunter

    Iceland is a crisis. Zimbabwe is a crisis. Rawanda is a crisis. Somalia is a crisis. Greece might become a crisis. The unemployment rate in Macedonia is 34%. In South Africa it's 22%. There are no shortages of food or fuel here. We have a recession, and a bad one by post-war US standards. Maybe we aren't as tough as we used to be to think this is a crisis.
     
  5. SilverSurfer

    SilverSurfer Whack Job

    Well, I represent the poor people on this site....not ones that have been collecting silver and gold for the last 20-30 years, or investing in real estate bubbles or oil stocks and making a fast buck by knowing when to get out before the crash. I speak for the people who barely make minimum wage, have no higher education because they can't afford it, and have bills stacked up from too much easy credit, only to be told by their employer that their services will no longer be required any longer, due to what you call "a recession." For one thing, these people don't have the money to invest in stocks, real estate, not to mention gold and silver. They live pay check to pay check. Try telling the man without a job, who was recently evicted by his landlord for not paying the rent and has 4 kids to feed that this isn't a crisis.
     
  6. fretboard

    fretboard Defender of Old Coinage!

    Yeah, what's up with the Greeks, no offense Greeks!! They got the Germans with their panties in a bunch, what's up with that? :D

    Oh I just found a story on this stuff, lunch time at work. talk later

    http://uk.reuters.com/article/idUKGEE5B81YH
     
  7. Cloudsweeper99

    Cloudsweeper99 Treasure Hunter

    And some people will be in that situation 100% of the time, so we must have been in a crisis since the end of the last Ice Age.

    Anyway, I'm done with this thread. It isn't in the spirit of CoinTalk. The rest of you can finish up.:D
     
  8. fretboard

    fretboard Defender of Old Coinage!

  9. BDA

    BDA Junior Member

    Weird.. I get statements from SSI telling me how much I have "paid in" and how much I will receive in benefits when the time comes. You can call it what you want... its a government mandated retirement program.

    I'm sorry if a differing opinion is getting into a political discussion, and is not in the spirit of cointalk. I was responding to your political statement in the first place. :D
     
  10. WebNomad

    WebNomad Junior Member


    I am glad finally someone has pointed out the most accurate way of assessing the value of PM. Yes, it is more about the fundamental purchasing power, and less about the value through exchange or conversion into another form of currency.
     
  11. desertgem

    desertgem Senior Errer Collecktor

    It is not fair to compare clothing goods from 300 B.C. which were all hand made and labor intensive with today ( mainly machine produced) in comparing the value of gold. Here is a URL with various values of earnings and costs in say 300BC Rome. 1 Aureus was approx. 1/4 oz. gold.


    http://ancientcoinsforeducation.org/content/view/79/98/
     
  12. Rono

    Rono Senior Member

    Howdy folks,

    Most delightful discussion.

    I've got a nice if not longish article on inflation deflation hyperinflation etc. that is interesting reading.

    However, a couple of things. There seems to be some disagreement about the economy and existing state of affairs. This is sort of incorrect from my perspective. What we have is a dual economy - an Economy of Yes and an Economy of No, if you will.

    In the Economy of Yes, my spouse and I have decent jobs with benefits and some sort of pension (DB or DC), an IRA, a 401K, some savings, maybe some taxable investments, 30 year fixed rate mortgage, kids are in school. Hey, life is good. "more wine?".

    In the Economy of No, I had a job at the factory but they closed and are now building them in China. Then I was working construction but that ended a couple of years ago with the subprime meltdown. My unemployment ran out. Wifey works at walmart making $10. Neither of us have any benefits and hope we don't get sick. Had to cash out my pension and 401 to pay bills but we're now behind on the mortgage and they're threatening foreclosure. Savings are gone, no IRA, no retirement, son's on drugs and daughter's pregnant. Life sucks. "You have another one of those beers?"

    And folks the problem is that the latter category is bloody huge and the former doesn't even realize the latter exists. Hell, you listen to the Kudlows of the world and it's all great. If you have money in stocks, you're doing great. But think about what's supporting the stock market.

    It's all the Quantitative Easing money Uncle Ben's been dropping from B-2 bombers looking for a home. Interest rates are zero and all that excess money has to go somewhere and the stock market is about the only game in town with a positive ROI (except gold and silver, TYVM!).

    So the stock market gains right now are simply the manifestation of inflation. And if a lot of that money that's being held by the banks ever starts to circulation - look out kids.

    Before I post the article, anyone ever visist www.shadowstats.com? Great site where he calculates all the gov't stats the way they used to be calculated before they started fiddling with the formulae.

    Anyway, when you have time read this article.

    http://www.gold-eagle.com/editorials_08/hera030910.html

    And have a good day,

    peace,

    rono
     
  13. phubanks

    phubanks Junior Member

    wow ... nice link.

    This chart courtesy of the Federal Reserve Bank in St. Louis is amazing.
     

    Attached Files:

  14. phubanks

    phubanks Junior Member

    chart shows the purchasing power of the dollar since 1913

    $1.00 in 1913 is now worth a nickel ...

    amazingly awful
     
  15. justafarmer

    justafarmer Senior Member

    This is the way it has been explained to me.

    It's a recession when your neighbor loses their job and a depression when you lose your job.
     
  16. SilverSurfer

    SilverSurfer Whack Job

    I apologize if I was out of line in the last comments I made. I'm just a little peeved that the haves can't see any problem with the economy when they point out that food and gas are still availalbe. But the truth is, they are only available to those who can afford it and the have nots basically can't. People who think the current situation is just peachy either have no friends, or all of their friends are rich people. Thank you, Rono, I really appreciated your post.
     
  17. BDA

    BDA Junior Member

    I'm a "have" who spent years as a "have not"... I understand where you are coming from.

    I could have chosen to stay working in a job with no real future, but I didn't. Both the wife & I spend years reading, studying, researching... looking for a niche market we could fill.

    Its in you to do the same. This isn't me being harsh to you... It's me saying its in you to do something for yourself that lifts you out of the have not catagory.
     
  18. Zuhara

    Zuhara Junior Member

    I now personally know a number of people who have worked very hard, some with advanced degrees, who have lost their jobs, are now worried they may lose their job, or cannot find one at all. Young people I know are looking for work in China. Apparently we don't need them anymore. But we cannot all be lawyers, doctors, or stockbrokers or whtever in any case; a healthy stable economy should provide employment across a broad spectrum. Instead we suggest people retrain themselves every ten years for jobs we then outsource somewhere else. It is amazing to me that we defend globalization on one hand, and then complain about people who take unemployment on the other. I am now telling the younger people in my family to be prepared to go elsewhere.

    First the poor, the old, and the sick get tossed aside. Eventually they get around to everyone else.
     
  19. BDA

    BDA Junior Member

    Who says you have to have a "job" or be employed by someone else? It's possible to be your own boss... Its not as hard as it sounds.

    All it takes is some hard work, research and study... and confidence. I've been self employed now for going on 14 years... started one business at the kitchen with an idea and a few hundred bucks.
     
  20. yakpoo

    yakpoo Member

    CRISIS? ...what Crisis? 2009 has been the best investment year EVER!! A refinance cuts your house payments almost in half. Houses have shrunk in price (no doubt)...but they have everywhere. If you sell your house for less money, you can buy one for less money somewhere else.

    Sure...things are "Doom & Gloom" on TV, but for anyone living within their means...thing's are looking pretty rosey!!
     
  21. mlmummert

    mlmummert Junior Member

    Just to be fair, if the person that kept the $20 bill had invested it in something that paid interest, they would have a lot more than $20 today. How much depends on what they did with it.:yawn:
     
Draft saved Draft deleted

Share This Page