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US Dollar about to collapse



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If you look at inflation vs.

If you look at inflation vs. wage growth, you can approximate that the average American can buy about 4 times what he could in 1913. Of course, you can sectorally look at it and say that the poor were better off in the 60s, the rich are better off now than they ever were, etc. But on average, 4 times.

Plan for eliminating the national debt in 10-20 years:

Overview: http://rolexian.wordpress.com/2010/09/12/my-plan-for-reducin...

Specific cuts; defense spending: http://rolexian.wordpress.com/2011/01/03/more-detailed-look-a

Back in 1920, a dollar could

Back in 1920, a dollar could probably buy a loaf of bread, a gallon of milk, and a dozen eggs.

Today, a dollar can buy a double cheeseburger at a drive through window in less than 5 minutes, a new kitchen accessory at the Dollar Store, or a 2 liter bottle of Pepsi at Wal Mart.

No wonders why they're trying to inflate the dollar.

Never be afraid to ask simple questions.

lmao....... no you show me

lmao....... no you show me exactly what a dollar could buy in 1920.

lmao.. you better do some

lmao.. you better do some research. Your "probably" is way off.

Yeah and if you were a carpenter

you worked your ass off for an hour and got 18 eggs

http://usa.usembassy.de/etexts/his/e_prices1.htm

say good bye to the good ol' days

No, a dime could buy those things in 1920.

And a dime can still buy those things today.

A dollar today can still buy what it did in 1920, perhaps even more in some cases due to mass production lowering production costs.

Now, a Federal Reserve Note, with the words "ONE DOLLAR" printed on it? Now THAT buys no where NEAR what it could in 1920.

here's what you got for a dime

and look at how much people made. A school teacher only had enough purchasing power for their hours work (aprx $0.50) to buy about 3 pounds of rice)

A dollar bought 12 eggs and a pound of rice.

http://usa.usembassy.de/etexts/his/e_prices1.htm

1920
Occupation

Income
Average of all Industries

$ 1407/year
State and Local Government Workers

$ 1164/year
Public School Teacher

$ 970/year
Building Trades

$ 1.08/hour
Working week: 43.8 h.
Medical/Health Services Worker

$ 752/year

Product

Price
Butter (Pound)

$ .70
Eggs (Dozen)

$ .78
Rice (Pound)

$ .17
Washing Machine (Electrical)

$ 85,00
Bicycle

$ 43,00

3 pounds of rice would be

3 pounds of rice would be what, a dollar today? Teachers make about 40 grand/year. About 20 FRNs/hour. So they could buy 60 pounds of rice with an hour of labor.

Plan for eliminating the national debt in 10-20 years:

Overview: http://rolexian.wordpress.com/2010/09/12/my-plan-for-reducin...

Specific cuts; defense spending: http://rolexian.wordpress.com/2011/01/03/more-detailed-look-a

Mathematical genius and master of reasoning, you are.

Don't need to convince me.

very good point.. I should

very good point.. I should not use the "dollar" but instead use federal reserve note.

Yeah, people also make like

Yeah, people also make like 20 times what they did in 1920. You cannot look at currency inflation and not factor in wage increases.

Plan for eliminating the national debt in 10-20 years:

Overview: http://rolexian.wordpress.com/2010/09/12/my-plan-for-reducin...

Specific cuts; defense spending: http://rolexian.wordpress.com/2011/01/03/more-detailed-look-a

No, they don't make 20 times in real terms what they made in

1920. Not everyone anyway.

The above stats show the average wage in 1920 was $1.08 (which I think is a bit high)

Adjusting my current hourly wage for inflation to 1920, shows in real terms, I'm making about 12.3¢ per hour right now.

I'd be willing to bet that 12.3¢ and then some that taking other numbers for other industries would produce similar results in nearly, (not all) cases.

Taking the per capita income in 2012 of $42693 (http://bber.unm.edu/econ/us-pci.htm) and the average yearly price of gold in 2012 of 1668.98, we arrive at only 19.87¢ per hour wage in gold terms. That's no where near $1.08.

Even allowing for the massive inflation from 1913 to 1920 doesn't make up all of the difference.

The problem is is that you

The problem is is that you think thinking of things in terms of gold is "in real terms".

You might as well use AAPL or GM stock, or corporate bonds, or anything. The proper way to do it, in my opinion is to look at buying power. The Average American can buy nearly four times today what he could in 1920. That is "real" growth.

Plan for eliminating the national debt in 10-20 years:

Overview: http://rolexian.wordpress.com/2010/09/12/my-plan-for-reducin...

Specific cuts; defense spending: http://rolexian.wordpress.com/2011/01/03/more-detailed-look-a

has nothing to do with it.

has nothing to do with it.

It has a lot to do with

It has a lot to do with it.

As costs go up, so do wages. As wages go up, so do the cost of things.

Plan for eliminating the national debt in 10-20 years:

Overview: http://rolexian.wordpress.com/2010/09/12/my-plan-for-reducin...

Specific cuts; defense spending: http://rolexian.wordpress.com/2011/01/03/more-detailed-look-a

I see you follow Kaynes.

I see you follow Kaynes.

No idea who Kaynes is. I

No idea who Kaynes is.

I follow reason, facts, and logic. Not surprised that you lack familiarity with those concepts.

Plan for eliminating the national debt in 10-20 years:

Overview: http://rolexian.wordpress.com/2010/09/12/my-plan-for-reducin...

Specific cuts; defense spending: http://rolexian.wordpress.com/2011/01/03/more-detailed-look-a

you answer that and tell us.

what did it buy?

I dare it to collapse

I don't think it has the balls.

SteveMT's picture

2014 GDP forecast is also collapsing.

What will come first the Depression2.0 or the Dollar Collapse?

http://www.zerohedge.com/news/2014-02-13/santelli-slams-self...

Cyril's picture

Did they get the tip yet, btw?

Guys, did someone remember to tip them it's time to invent the negative GDP?

"Cyril" pronounced "see real". I code stuff.

http://Laissez-Faire.Me/Liberty

"To study and not think is a waste. To think and not study is dangerous." -- Confucius

Making things look good.

Using pre-1980 metrics 1/5 of economy has disappeared.

20% of workforce is unemployed.

http://www.shadowstats.com/alternate_data/gross-domestic-pro...

Free includes debt-free!

NOt using pre-1980 metrics.

NOt using pre-1980 metrics. Using bullshit metrics.

Shadowstats just makes things up. He doesn't do any analysis. He merely takes the government-provided numbers, and adds a fixed percentage to it. Then he calls it pre-80s metrics.

Plan for eliminating the national debt in 10-20 years:

Overview: http://rolexian.wordpress.com/2010/09/12/my-plan-for-reducin...

Specific cuts; defense spending: http://rolexian.wordpress.com/2011/01/03/more-detailed-look-a

that happens

when you have to compete against people who work all day for a fish head and a bowl of rice.

Perhaps they are grateful.

If they prayed for their daily bread.

Free includes debt-free!

of course

need not be said

Shadowstats doesn't use

Shadowstats doesn't use pre-1980 metrics.

Shadowstats LITERALLY takes the US given unemployment number, and adds a fixed percentage. LITEARLLY. No science, no figures, no complex mathematics.

Plan for eliminating the national debt in 10-20 years:

Overview: http://rolexian.wordpress.com/2010/09/12/my-plan-for-reducin...

Specific cuts; defense spending: http://rolexian.wordpress.com/2011/01/03/more-detailed-look-a

You are sort of right

He just ads U-6 into the total becasue U-6 was included in the headline number. No deeper analysis needed, just add U-6 into the current headline number and you have the 1980s headline unemployment metric.

peAce

Liberty = Responsibility

All CAPs, wow.

All CAPs, wow.

Free includes debt-free!

We're the ones that got the tip

and we're getting the shaft too. Pretty soon the balls are gonna start slappin'...pappy dee pappy dee pap pap pap pap....