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Is inflation a measure of the loss of dollar purchasing power?
cohodk
Posts: 18,621 ✭✭✭✭✭
What says the collective?
Excuses are tools of the ignorant
Knowledge is the enemy of fear
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cohodk
Posts: 18,621 ✭✭✭✭✭
cohodk
Posts: 18,621 ✭✭✭✭✭
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Actually, the true definition of inflation is an increase in the money supply which normally/eventually leads to consumer price inflation (CPI). Yes, price inflation measures a drop in the purchasing power of money.
Keep an open mind, or get financially repressed -Zoltan Pozsar
Does this chart demonstrate a drop in the purchasing power of money?
Knowledge is the enemy of fear
No, that is a chart that shows gold price adjusted for inflation.
This is a chart while not up to date that shows the historical drop in the purchasing power of the dollar:
Keep an open mind, or get financially repressed -Zoltan Pozsar
you're missing the game being played.
gold is supposed to go up with a decrease in dollar purchasing power.
that inflation adjusted gold price is all over the place but not up and to the right.
so we're now supposed to explain the reason why....
Hint: Gold's price is not pegged to the dollar. It has it's own independent pricing dynamics. It does however, historically go up with inflation (a decrease in dollar purchasing power). The charted "adjusted for inflation" gold price is all over the place because the annual inflation rate changes.
Gold does go up when the currency it is priced in goes down. That is what makes it "insurance."
Keep an open mind, or get financially repressed -Zoltan Pozsar
Yahtzee!!
The whole worlds off its rocker, buy Gold™.
Gold eating dollars! I like it.
Keep an open mind, or get financially repressed -Zoltan Pozsar
Inflation is a loss of purchasing power. Depending on perspective, the US dollar may or may not be an appropriate measure.
Also, of course, it depends on point of view: as a consumer? a company? a government? Though CPI and other measures are useful, they are rough approximations. You and I likely have different consumption patterns and experience inflation in different ways. Even for a single individual, consumption patterns evolve over time.
Figured you would, cartoons, rainbows, unicorns, and all. Happy stacking, I will soon be dumping. Just prior to the breach of $5K. lol
The whole worlds off its rocker, buy Gold™.
Yes. Perhaps we could look at the loss of purchasing power of gold. Would that be a good measure? Has it lost purchasing power? Is gold immune to inflation?
Knowledge is the enemy of fear
For a person who knows everything you sure ask a lot of questions.
Keep an open mind, or get financially repressed -Zoltan Pozsar
Has anyone tracked the GDSR recently? I think it still holds.
https://www.businesswire.com/news/home/20110819005774/en/History-Shows-Price-Ounce-Gold-Equals-Price
My suits are more in line with a 1/10 oz Au these days. Although I've never been a name brand man, perhaps I may just be a cheap ole basstad. Rgds!
The whole worlds off its rocker, buy Gold™.
So did Socrates 😉
Liberty: Parent of Science & Industry
A decrease in purchasing power can also be from destruction of jobs.
Like.....uh......NOW?
I don't see how they can inflate wages or profits to tax.
If they can, gold will be 10,000
Yes, but he already knew the answers. Our Socrates only thinks he already knows the answers.
Keep an open mind, or get financially repressed -Zoltan Pozsar
And thats a lot more than derryb.
Knowledge is the enemy of fear
Pelosi rejects $1 Trillion more. Wants $3 Trillion +++
The dollar is in free fall is the reason Gold is surging.
100% Positive BST transactions
confidence is in free fall.
Keep an open mind, or get financially repressed -Zoltan Pozsar
Last one to defect to Bulgaria turn out the lights. It's a shame that there are those who continuously root for our own demise. Semper Fi!
The whole worlds off its rocker, buy Gold™.
Sorry that the truth hurts, but it wouldn't be so painful if you embraced it and used it instead of denying it. Semper Fo!
Keep an open mind, or get financially repressed -Zoltan Pozsar
I would never root for our demise. We are destroying ourselves with greed whether I root for it or not.
According to Blitzy, anyone rooting for gold is rooting for our demise. I think he forgot that he is also rooting for gold. He doesn't realize that those who do see what's coming are only preparing for it.
Keep an open mind, or get financially repressed -Zoltan Pozsar
When someone buys life insurance, are they rooting for their own demise?
Worry is the interest you pay on a debt you may not owe.
No I was referring to the bulgariahedge someones.
Oh the comex is imploding, dollar is collapsing, zombie doomsday bunker can't wait for everyone to be starving in the streets so I can be king ones.
I love gold, I got lots. PS I root for America. Thanks!
The whole worlds off its rocker, buy Gold™.
I was on Vacation in Mexico back in the 1990's when over night the Mexican Government moved the decimal on the peso 2 places. My 100 peso was now 1 peso. THAT was a interesting trip. It can happen here. Got Gold?
100% Positive BST transactions
You can bet it will on the national debt and Fed balance sheet. And two places would be a minimum move.
Embrace our countries demise??!!
It saddens me to know my tax dollars pay your govt benefits.
Knowledge is the enemy of fear
I would say yes. The higher inflation the less product can be purchased . For instance...
The price of a candy bar ... used to be less than a dollar ... now it's almost $2.00 for a smaller size candy bar. etc.
If that were the case derryb would be as poor as you claim he is...
When did i claim him to be poor?
I know how much he had back around 2009 or so....he told us how much he had in his IRA. He also told us of his trading...and i know some trades didnt turn out so well, although he never told us of any losses.
We also know he has guaranteed income from the govt.
Knowledge is the enemy of fear
I root for gold as most here, besides you, do. Sleep well at night knowing that one day my tax dollars will pay for your Social Security and Medicare benefits.
Keep an open mind, or get financially repressed -Zoltan Pozsar
Who said i didnt "root" for gold?
You guys really like to invent your own reality.
Gold doesn't care whether i root for it or not, contrary to those who prefer to spread misinformation and conspiracy theories.
Get to the topic of the theead and stop trolling.
Knowledge is the enemy of fear
Obviously they knew a good investment when they saw it.
Yes he has a govt. pension to which he contributed and earned with 35 years of providing you a strong and reliable national defense. While I did protect you from foreign bad guys, sorry I was unable to do so with the FED. My attempts to do so here on the forum you simply not only ignored but did everything you could to discredit with untruths.
So, I assume you're gonna turn down your private pension, and your social security and your medicare benefits when the time comes? lol, I'll be you a boat you don't.
If you're offended because I take offense to the mis-management of this once resilient economy and the corruption running rampart throughout it's economic leadership and because I point it out, just suck it up. Where was your voice when needed? You will find most people here who stack PMs, do so because they recognize the same mismanagement and corruption as do I and, like me, are insuring their future from it.
Burying your head in the sand because the the TV stock ticker is mostly green just means you, like many people, were silenced with a little profit. While I have spoken favorably about some of China's economic decisions, I don't recall doing the same for Russia, let alone Iran. (PS: China continues to dump dollars and all three of them are now trading petro without using US petrodollars).
I will not let your particularly perverse brand of a cowardly badge of "patriotism" prevent me from seeing and commenting on PM positive and dying dollar actions wherever they occur. Get over it, patriotism is far from a blind allegiance to believing everything you are told. If you have forgotten its true meaning I suggest you doing some real research starting with our Founding Documents. Realizing the dollar has been dying a slow death does not make one a traitor, it makes them an informed investor. There would be very little need for or interest in precious metals if there were no mismanagement and corruption of our economic institutions.
Patriotism? Ha. you couldn't come close to withstanding the scrutiny required to hold some of my highest level security clearances. Talk to me about patriotism after you have spent your working life defending this nation with action and not silly words.
I'm not gonna waste any more of my valuable time defending myself from a couple of trolls who believe belittling others with false accusations somehow makes them the better man. Hopefully those you are trying to impress see you for exactly what you are.
Keep an open mind, or get financially repressed -Zoltan Pozsar
https://en.wikipedia.org/wiki/Inflation
"Inflation" has so many meanings and twists and turns it has to be "defined" in a precise context. Monetary inflation, price inflation, etc. The fact that the CPI (consumer price index) is a constantly moving "target" basket of goods, it's of limited use. And it has been re-defined and adjusted several time over the past 40 yrs to "make it smaller and smaller".....lol. The GDP deflator is not much better. Only way you can tell price inflation is to go shopping and spend your currencies.
You navy boys weren't so bad. Someone had to give us a ride. Rdgs!
The whole worlds off its rocker, buy Gold™.
And, like your mother, protect you and feed you until you got there. lol
Old joke among the sailors I worked with: "what sinks faster than a rock?"
"A jarhead."
Keep an open mind, or get financially repressed -Zoltan Pozsar
You're right derryb, I shouldnt question your idea of patriotism. I apologize (which is why i deleted my comment very shortly after posting, although not soon enough for one of you minions to copy and send to you;)" Yours is just different than mine, which is more akin to one of our great Presidents.....
I prefer the man in the arena over the critic in the stands.
The country I choose to stand by is the USA.
Knowledge is the enemy of fear
Per your above quote of President Teddy: "It is unpatriotic not to oppose him to the exact extent that by inefficiency or otherwise he fails his duty to stand by the country." Sounds exactly what those here are doing when they fault economic leadership for the financial crisis we once again are up to our necks in. Appears my understanding of "patriotism" is right in line with that of President Teddy. Question is, "why not yours?"
Why apologize for calling me a traitor and then turn around and imply it? Your continually incorrect assumptions on the forum, specifically when a point of view differs from yours, are what destroy your credibility. Avoid the mudslinging, stick to the discussion. Try to discredit the point of view, not the person presenting it.
"minions, copy, send." lol, sounds like a conspiracy theory. You are being. . . what's that word you like to use. . . "paranoid."
I simply read your post, quoted it and responded to it.
Keep an open mind, or get financially repressed -Zoltan Pozsar
Semper F'n Fi! Very refreshing to see we still got some PATRIOTS up in here!!
The whole worlds off its rocker, buy Gold™.
I didnt call you are traitor. But, as youve said, your perception is your fact.
Try to discredit the point of view, not the person presenting it
So I should post more cartoons?
Yours beliefs are quite the opposite of Roosevelt's. He would never say to embrace our country's demise.
America!!!
Knowledge is the enemy of fear
Hey, I'm here to discuss PMs. If you are not, then go somewhere else.
Keep an open mind, or get financially repressed -Zoltan Pozsar
what does PM mean again?
Precious Metals or Private Message depending on context and how it's being used.
Worry is the interest you pay on a debt you may not owe.
oh, see I was thinking it was Polluted Meat
I can hear Roosevelt's admonitions throughout derryb's and cohodk's months (years?) of commentary and cross-commentary here. I've always perceived that their thoughts were voiced with the greater good in mind, and that both have ultimately presumed the good provision of our Constitution (and of PCGS!) to articulate different views.
Here's a warning parable for coin collectors...
lol that's the other thread, the one talking about you over processed US grocery store chicken.
The whole worlds off its rocker, buy Gold™.
There's a reason they now call Five and Dime Stores "Dollar Stores." Next they will be called Ten Buck Stores.
Keep an open mind, or get financially repressed -Zoltan Pozsar