Gas prices have been stable this year, at least where I live.
No, the comparison between metals and the dollar does not give an accurate reflection of inflation. Because gold and silver do not rise and fall based on the value of the dollar/price/money supply alone. They fall and rise based on many things.
For example, gold between 1808 and 2000 was up about 15x. You are a fool if you think that the money supply was only up 15x since that time, or that inflation was only 15x since that time.
Conversely, gold has gone up about 4x since 2000. You are a fool if you think that the money supply (M3) has quadrupled over that time, or if the value of your money has been chopped to a quarter.
Lastly, the price of gold has fallen about 400 dollars in the past year. Has the money supply shrunk? No. Has there been deflation? No.
The problem with the CPI, is that it gauges inflation by looking at how the market buys a product. In some ways, this minimizes inflation, and in other ways, it makes it looks worse than it really is. For example, a jumbo jet, let us say, costs 100 million. 10 people buy them each year, again, let us say. So the CPI would sya that the cost of jumbo jets on the econommy this year was 1 billion. Next year, there is a great technological invention that brings the cost of the jet to 1 million. With the reduced cost, 10,000 are purchased. The CPI would say that the total cost of jets on the economy was 10 billion, and that there was a price inflation of 900% on the price of jets to the overall economy. The CPI ignores the fact that the price/jet is actually down; that is what causes the increased economy cost since more people can buy it.
Conversely, look at food. According to CPI, the price of a single weight of orange has stayed same from 1980 to 2010. But crtics will rightfully point out that today's orange is not the same. It has less nutrients, tastes much worse, and is loaded with pesticides and poisions. The CPI would argue that the consumer-base has accepted the mass-produced orange as the equivalent of the 1980 orange, as judged by their purchasing habits. Even though, we know that it is a practically different product.
Also, inflation is the measure of the change in the value of the dollar, whose value is determined by the price of things. That tells you the actual value of the dollar.
I would like to see this food/silver ratio (and why ignore the food/gold ratio, whatever that may be?)
Plan for eliminating the national debt in 10-20 years:
Specific cuts; defense spending: http://rolexian.wordpress.com/2011/01/03/more-detailed-look-a
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