Posted on December 30, 2005
Filed Under Uncategorized |
The price of gold a high of $850 in 1980. Adjusted for inflation, $850 of 1980 dollars is worth $2007 today, according to the Fed’s very own CPI calculator . Today gold doesn’t trade anywhere near that figure - it is “only” around $500, which is both nominally less than its 1980 high, but 75% less when adjusted for inflation!
The Fed has done nothing but print money, M3 has gone parabolic and yet gold - history’s best measuring stick for inflation — actually indicates deflation. Think that over for a while, and after you’ve been thoroughly confused and then come out on the other side to clarity, post your explanation below.
More ideas on deflation at: http://www.bullnotbull.com/archive/market-12302005.html
Thanks and happy 2006!!!