Few people understand the difference between ‘nominal’ and ‘real.’
Regarding the nominal value versus the real value of the dollar…
Nominal: the ‘face’ value printed on a paper fiat note.
Real: what you can really buy with that note.
The buying power of fiat money (the dollar) has fallen by 96% under America’s greatest failure (the Fed) since the year it was established in 1913.
This equals the ‘invisible’ robbing of the Poor and Middle Class by the Fed. Let me give you an example of the difference between average wages in paper fiat over time, compared with equivalent ounces of Gold:
– Average wages in 1959 were $5,016 or 143 oz of Gold
– Average wages in 1977 were $15,000 or 120 oz of Gold
– Average wages in 1999 were $28,970 or 104 oz of Gold
– Average wages in 2008 were $41,335 or 53 oz of Gold
– Average wages in 2012 were $42,000 or 26 oz of Gold
This is not exactly rocket science, yet most folks consider that they are ‘doing better’ because their nominal wages have increased over time, when in fact it takes increasing nominal amounts of debauched fiat to buy the same ounce of Gold (in effect making Gold more valuable over time in terms of buying power, as the Dollar slides into Zimbabwe territory).
(some data above sourced from jsmineset.com)
|SUV – Station Wagon||$27,000||$2,970||809%|
(data above from various sources, subject to some variance)
The average of the price increase over the past 53 year period for the foods and goods listed above (except income and gold) is 1,004%
The average wage income has increased 737%
The dollar price of gold bullion has increased 4,471%
…and who says that gold is an old relic? Oh that’s right, the main stream media along with the Federal Reserve and their associated banksters.
This little non-scientific exercise just goes to show you a slice of the illusion of fiat paper money which is backed by nothing since we’ve been completely taken off any resemblance of a gold standard.