HELP! Need graph of steady decline of the value of the dollar since 1913.
Submitted by fight4liberty on Mon, 11/26/2007 - 02:30I am planning on presenting key info related to RP's candidacy to some friends of mine. I once saw a cool graph of the decreasing value of the dollar since 1913 to recent times but I have not been able to find it again. I already have the graph that shows the steady increase of the Consumer Price Index since 1913 so I don't need that one. Just the one showing the decreasing value of the dollar. (If you know of a graph that tracks the value of the dollar PRIOR to 1913 that would even be better.)
Can anyone point me to one or more sources of this graph???
Thanks in advance.
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decline relative to what?
Decline relative to what? Use the price of gold in dollars an turn it upside down.
ANy other currency used will mask the truth as those curencies have also been declining. You need a comodity. or couple of commodities.
The cost of pencils.
What Great Data Sites
I love Ron Paul Supporters.
Some of these sites have priceless data I've been looking for for some time now.
Multiplying the index's , commodity prices , ect by the Dollar Index will give a great picture of what is really going on. I've been trying to explain what an "invisible crash" is and this will help. It is when the investments seem to be going up and people think they are making money but they are losing it. It is the ultimate theft.
This is awesome.
Good article
Good article
edit:
In reference to the post below mine.
Many Charts And Also Excellent Article On Inflation
The title of the article [link below] is "The Two Ben's" which means Benjamin Franklin and Ben Bernanke.
The charts are embedded in the article just right click on the image and save to file.
http://www.financialsense.com/stormwatch/2005/1028.html
Jim ODonnell
Jim ODonnell
Good graph!
That graph from the article is very visual and easy to understand!
Prices remained more or less the same (albeit cyclically) until the 1917; prices have been going up ever since. They've been rocketing up since the late 1960s when we had printed so much money that we abandoned the gold standard entirely.
Bad graph
I don't like this graph because it uses linear scale. It should definitely use log scale (it looks scary even with the log scale), as it could be easily used against you. This graph uses log scale and if you want the price level, just turn it upside down (price level = 1/purchasing parity -> log(price level) = 1 - log(purchasing parity).
Here ya are.
Check out this. Shows not only the sinking value of the dollar, but every other major paper currency of the 20th century.
Note that this is logarithmic. The dollar has lost 90% of its value since 1900.
Here is some commentary on the dollar and US economy.
??
That's weird, it looks like there is deflation in the other currencies, while I'm 99% sure it is not. Look at images.google.com and enter "pruchasing power dollar 1800" and you will obtain nice graph with log scale that should fulfill your needs.
It shows purchasing power
The graph is not a dollar index. It looks at the declining purchasing power for various currencies over time -- how much stuff you can buy with $1 (or 1 yen, or 1 Euro) that you buried in your back yard.
What the graph says is that if you could buy one widget with $1 in 1900, you could buy less than 1/10th of a widget today (or, you would need $10 to buy that widget today). However, if you had bought $1 of gold in 1900, you would be able to buy more that same widget with gold today.
More concrete example:
If you had buried a few thousand dollars in your back yard in 1900 (which was enough to buy you some land and a house at the time) and dug it up in 2007, you would probably not even have enough for a down payment.
However, if you had bought gold with those few thousands dollars in 1900, you would be able to buy a similar house today.
This is not unique to the US dollar. The point of the graph is that all paper currencies lose value. Take $1 and convert it to any paper currency you want. I can guarantee you that offering to give this paper to a McDonald's employee in 2107 will not persuade him to make you a double cheeseburger, either because of inflation or because the government now backs different pieces of paper (example: France switching from the French Franc to the Euro).
This lies at the heart of why people want to be able to hold hard assets like Gold, for which the purchasing power remains cyclical (chart: blue line shows how much house you can buy per amount of gold).
No, it's incorrect
The graph is incorrect, because it is derived from US deflator and computed using exchange rate for other currencies. I am sure that there was no deflation in Germany and France in the last 50 years, the lines for these currencies should be decreasing as well - probably as fast as the US.
I would tend to say that the US GDP deflator is underrated, thus the purchasing power of dollar declined even faster, so that you could get more reasonable graphs for other currencies. Alternatively, it is possible to reject the exchange rate comparison, because the purchasing parity exchange rate mostly does not correlate with the market exchange rate much.
declining dollar
You will find the graph you seek at
www.libertydollar.org
for Hard Money & a Secure Frontier
LehrBoy
www.citizenduquesne.org
West of 89
a novel of another america
https://www.smashwords.com/books/view/161155#longdescr