Comment: Everything else being equal, your equation is correct, however

(See in situ)


Everything else being equal, your equation is correct, however

I believe your math assumes a constant value for the dollar. What is happening is the reduction in value of the dollar, Ron Paul has said the dollar is now devalued by 90 some percent from the 1913 dollar. I like his example of the 1964 dime, now worth about $3.50, that should shock everyone. It appears the fed plan is to continue the controlled devaluation, as long as the world will keep trading oil in FRNs, it will work, at least for a while. If an event happens that causes the world to reject the petrodollar, it's hyper inflation and probably WWIII as the US military steps in to control the worlds oil fields.