Yes inflation exists. Could’ve just invested it. More news at 11.
If you compare it with Gold - against which the USD moved in lockstep until the US left the Gold Standart - it’s a lot worse than just a 50% loss since 2013, more like a 65% of value.
The fall is probably the same in terms of real inflation (as actually felt by people in terms of how much less their money buys) - the official inflation figures understate inflation (probably because the mathematical calculation for GDP involves raw GDP being deflated by inflation, so the less the official inflation is the more politicians can harp about how much they made GDP “grow”) and this has been going on for decades, which is why a single blue collar salary that used to be enough for a good house, a car and the expenses for a family of 5 in the 60s, now can barelly pay the rent of small appartment in a major city.
More like the price of gold is artificially inflated far beyond any actual value.
The alternative view is that the real value of government issued currencies has fallen and Gold just kept going along with its 1.2% yearly inflation due to gold mining.
That the official currencies buy less and less (as I pointed) leans more towards the view that the value of government issued and controller currencies is being inflated away much faster than the value of an ancient currency which is not controlled by any government and only devalues by more of it being mined.
In other words, at medium and long time frames Gold is not an investment asset, it’s a store of wealth outside the control of politicians.
If there is more gold, it’s value should go down. The price should only go up when supply becomes limited, or some new thing demands more than usual.
Gold has a lot of practical use, but because it’s value is hyper inflated it is almost always more cost effective to use a cheaper material. Which, incidentally, is driving the cost of those materials up.
I’m not saying gold should be the same price as copper. I am saying that in a rational environment the prices should be comparably similar.
As it is, gold is 10,000 times as expensive as copper.
Gold - against which the USD moved in lockstep until the US left the Gold Standart
That’s because the Bretton Woods system set the price of gold to $35 per troy ounce. It would be dumb to pay more than $35 per ounce on the market because you could just exchange $35 for an ounce of gold from the government.
Gold is just massively inflated compared to the USD because people do not understand the benefit of fiat currency.
I find it hard to believe that people actually think gold is less volatile than the USD when it has inflated in “value” by 12,516.60% in the last 50 years. If you don’t think that the vast majority of that increase isn’t due to over speculation then I have a bridge to sell you.
If you compare it with bitcoin it’s even worse. Both aren’t great comparisons, the US left the gold standard so long ago it’s not a meaningful comparison.
I think someone scammed you, these usually have apes in the picture.
The only stable meme coin is gold
I prefer Joules myself
Not so stable this past year tbh
Gold to usd lost 30% since 2013
I thought gold was immune to all this because there was a more less fixed amount
Gold to EUR too I guess? 🤔 No clue how that works.
Yeah, pretty much the same.
(Mind you, I personally went into Gold at around 2013 after having experienced the 2007 inside the Finance Industry, and back then I used British Pounds, and Gold did not give a shit about Brexit but the British Pound sure did - by crashing 20% - so in pounds Gold is actually a bit better than vs USD or EUR)
That said, I look at it the other way around - Gold is the original currency and one that can’t be devalued at will by governments (its only inflation comes from gold mining, which increases the amount of gold in circulation by, last I checked 1.2% a year), so it’s not Gold price going up, it’s the value of government issued currencies going down vs the more traditional currency that’s not controlled by any one government which is Gold.
Certainly this seems closer to how people have felt inflation in at least the major paper currencies - back in the 60s a single blue collar salary was enough for a good house, a car and the expenses of a familiy of 5, now a white collar salary it’s barelly enough for a single person to live in a small appartment in a city, even though according to official inflation those two are equivalent amounts: it looks a lot like the purchasing power of gold has roughly remained steady whilst the purchasing power of government issued currencies has steadilly fallen and done so faster than official inflation figures for those currencies say it did.
Every investment has grown incredibly in price. Stocks, gold and also housing. That is honestly the biggest reason a blue collar workers pay can no longer feed a family of five easily. In the 60s food was actually pretty expensive back then for example. In the US of 1960 a stick of butter would be the equivalent of $27.74 today. However housing was not and that makes up a huge part of current spending, if you do not own a property already.
That further points towards the idea that it’s not Gold going up in price, it’s government issued currencies going down in value.
It points to assets being inflated, due to the rich not being taxed properly any longer.
Are you saying that people possess the same absolute amount on a grown piece?
There are in fact more reasons that that.
For example the amount of money in circulation has grown massivelly ever since the 70s, because digitalization means that most money is just numbers in databases and most payments are just bits and bytes rather than actually issued paper currency. In the modern era most money is created by private banks as loans, not issued by central banks (here’s a Bank Of England paper on that to show I’m not bullshitting) to the point that over 90% of all money in circulation wasn’t issued by a Central Bank.
Then within that context, there’s the fall in interest rates which were supposedly temporary reduced by Central Banks after the 2007 Crash to help with the recover but never really went back to the historical average - lower interest rates mean people can take bigger long term loans and still pay the same per-month, which is especially relevant for things like housing because it meant higher house prices that would otherwise be unaffordable were affordable with those lower interest rates. This also affected things like corporate bonds prices - companies could easilly do things like get ultra cheap money buy issuing bonds with very low interest rates or directly from the Money Markets and use that money to buy back their own shares (thus increasing share prices) which large numbers of publicly traded companies did helping push up the Stockmarket.
And then, of course, there’s how the concentration of wealth in fewer hands (largelly due “the rich not being taxed properly”) meant way more money in the hands of people that don’t spend almost any of it in Consumption (because it’s way more than what’s needed for that) but instead Invest it, so they bid the prices of any and all Investment Assets, including stupid shit that would never otherwise be treated as worthy of investing in (such as Crypto).
It’s a big, ultra distorted Economic system, very much purposefully made so to put lots of wealth in a small number of hands (Finance - and hence those who own it - has captured A LOT of wealth way beyond the value they bring to Society) and we’re shamelessly lied about all of it.
Well, whenever trump is in office, they start printing the things like crazy.
Turns out inflation exists, literally no one knew about this until just now
Not long ago, I found a $100 bill at our local gas station.
I picked it up by the trash can, figuring it was probably a church fake.
It wasn’t a fake at all, it was a real $100
I make point to check by those pumps everytime I pass by that gas station…
It is fun how similar mammals are. My dog found a different dogs ball in a bush on one of our walks once. Now they check the magic toy giving bush every time we walk by it. I kinda want to stash more toys in the bush, but I also am afraid of making his conditioning worse.
You should leave a note. “Did you lose $100 here? Please do it again. Ha ha!”
Down 50% already?
I’ve got a crisp $50 in my pocket. I’ll trade you for it.
That $50 is only worth $25 in goods or services.
I’m happy to pay you $25 for it!
Those $25 are only worth $12,50 in goods or services.
I unlocked some sick alpha by exchanging those for drugs and then selling those drugs in smaller plastic bags
Fent is only like US$20. Don’t OD.
Meme aside, is this based on inflation? Some sort of global market?
If it’s inflation it’s not accurate. 100 2026 dollars is equivalent to 70 2013 dollars (not $50).
Just trying to fact check the math. I’m fun at parties.
Your personal purchasing power could be very different than the CPI. Also I think people put more importance on the basics like food and housing, those are surely 100% more expensive than 13 years ago. And with that going up you don’t really care that you can afford more t-shirts. But t-shirts are bringing down the CPI.
So yeah: lies, damn lies and statistics. P.S. also fun at parties
“Erm, buddy, you know that’s not how they actually make milkshakes” type energy bud
Meme aside, is this based on shaking a cow? Some sort of bovine agitator?
If it’s shaking a cow it’s not accurate. Shaking a cow produces only 120ml of foamy milk (not 750ml).
Just trying to fact check the math. I’m fun at parties.
I think if you include cost of living and cost of purchasing property, the US dollar is easily 50% less effective now than in 2013.
Benjamin Franklin smirked like that in his photo because he always knew.
Nah, he was thinking of ho-ors.
w’hores
Historians always thought “You motherfuckers are gonna fuck it up.” was praise to future generations sharing his… proclivities. How wrong we were.
Keep holin’ it bruh. Market is going to reward your patience bruh.
Fucking trash shit coin. I lost my ass on this too.
Yeah but the new one with that terrible signature will surely moon!
Good, holding currency and wealth is bad for society.
Not strictly. If more money is saved, that does reduce economic activity, but then it’s the governments responsibility to create more money. It makes no sense to blame the actions of individuals for systemic failure, especially when there is an entire class of people whose job it is to keep the system running.
But yeah inflation itself is not a bad thing if that’s what you’re saying.
I seem to remember needing currency to buy goods and services needed to stay alive.
But you don’t need to hold on to it for decades.
The point of the post is that now the dollar has less value but the government didn’t do anything to ensure that you either get more dollars or the price of things don’t skyrocket every 6 months
