Posted by: kandersen | February 18, 2009

Hyper Inflation. The Falling Dollar Gold? Silver?

This is stimulating. When you consider how much money the federal reserve has printed it becomes quite maddening. I remember the day when a candy bar was 5 cents, Buy a house for 10 Grand, not just a little cracker box either were talking swimming pool and thousands of square feet.

Glenn Beck recently point this out in a little video here.

This figures are backed with fact as you can see by going to the federal reserve site which shows how much money has been flooded into the market

FRED CHART

So lets put this into perspective. Since the dollar was taken off the gold standard it has become pretty much worthless. On the other hand, Gold has maintained the value. Lets take for instance in the 60’s a nice car would cost you about 2500 dollars. at the same time gold was about 35.00 an oz (those were the days) that would equate to about 71 oz of gold. If you carry that over to current gold prices thats about 69,000 dollars worth of gold. which also is about what a nice sports car would cost today.

so after this money really takes traction in the market that will mean that your buying power will once again go down. Eventually we might get to the point where we have to take a wheelbarrow of money to buy a loaf of bread. Time to ask the boss for a raise!

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