Posted by: spickering | March 21, 2007

There Is No Such Thing As Inflation

All that is happening is that the value of the dollar is going down. “Real” prices do not change. Consider this: Since 1970 the price of oil in terms of gold has maintained almost a steady relationship of 11. Over this time Gold has traded almost always at about 11 times the price of oil. In 1970 oil was around $3 and gold was $35. Today oil is $60 and gold is $660. All this means is that the value of the dollar has dropped by about 20 times. If the dollar had never been de linked from gold, if Nixon had never closed the London Gold Window, today oil would still be $3. And if you look at the relationship of the gold price to all other things in our life: houses, cars, etc. its about the same. Except one thing: Average worker income has only gone up about 7 times in this period. And with all this productivity increase! We have been robbed by Government Monetary Policy.

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