Originally Posted by TF49
All,

FWIW for those still interested, I have links to three graphs.

The first graph shows how gold took off in 1972 when Nixon closed the gold window.

http://goldsilverworlds.com/gold-and-silver-prices-over-200-years-long-term-gold-and-silver-charts/

The second shows oil taking off in 1972.

http://en.wikipedia.org/wiki/Price_of_oil#mediaviewer/File:Crude_oil_prices_since_1861.png

The third shows a longer term look at how gold and oil move together. As I had posted earlier, the ratio varies quite bit. It has been as low as ten or so and up in the ranges about 21 where it is now. If one looks at these graphs and thinks a bit, one can conclude that the dollar has lost 95% of its value since 1972. I expect this trend to continue in the coming years.

http://www.marketoracle.co.uk/Article38141.html


If you use the price deflator, between 1971 and 2011 the dollar lost 77.5% of it's value.
It would take $4.44 in 2011 to buy the same goods and services you could buy in 1971. However if we extend you example and go back another 40 years, the would take $2.79 1971 dollars to purchase the same good and services as you could in 1931. During this 40 year period, the dollar lost 64% of it's value, much most of which we were on your coveted Gold Standard.


You didn't use logic or reason to get into this opinion, I cannot use logic or reason to get you out of it.

You cannot over estimate the unimportance of nearly everything. John Maxwell