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The Relationship between Real Money and Real Prices



-- Posted Thursday, 3 June 2010 | | Source: GoldSeek.com

By: Michael "Woody" O’Brien ChFC

 

There is a natural order of some things in economics that no central bankster looting scheme can forever suspend.

 

One of those econ realities is that, over long periods of time, humanity gets better at making stuff and delivering it to markets, with greater cost efficiency.

 

This reality means the natural, organic, economic order of things is deflationary, and over time most prices should, by any honest money measurement, fall.

 

However, central banks fiat money creation assures that the TRILLIONS of dollars per year of consumer advantage that honest money would deliver, fraudulently melts into the balance sheets of banksters - a scheme the majority has yet to discern.

 

People understand they are getting raped by banksters, they just have a hard time sorting out the math.

 

There is of course an easy solution to this math problem: Stop thinking about money using any fiat toilet paper Money measurements, and instead use Gold & silver as benchmarks.

 

Keep in mind, both gold and silver prices have been greatly suppressed by banksters to hide inflation. However, even with suppressed prices, gold & silver remain the best real metric to see how prices have fallen when measured in real money.

 

When that economic idiot Nixon took us off the gold standard on the advice of “genius” Milton (closet inflationist) Friedman in 1971:

 

1 ounce of silver bought about 3.5 gallons of gas; it takes just .48 of a silver ounce to get the same amount of gas today.

 

87 ounces of gold would get you a basic new car; it takes just 10-

15 gold ounces to buy a simple new car today.

 

1 ounce of silver would buy you 17 1st class stamps; it takes just .48 ounces of silver to buy 17 1st class stamps now.

 

3.67 ounces of gold would rent you an average apartment; it takes just 1 ounce of gold to rent an average place today.

 

1 ounce of silver would buy a movie house ticket; it takes just .65 ounces of silver to see a flick now.

 

1 ounce of gold would buy 163 basic loaves of bread; it takes just .19 ounces of gold to get those loaves now.

 

1 ounce of silver would buy you a gallon of organic farm milk; it takes just .50 ounces of silver to buy organic now.

 

1 ounce of gold would buy 416 lbs of potatoes; it takes just .10 ounces of gold to get the same tubers now.

 

1 ounce of silver would buy you 5.5 dozen eggs; it takes just .60 ounces of silver to get those eggs now.

 

I could go on for days with endless examples of how, over the long term, prices of nearly all real goods are falling when measured in the real money of gold and silver.

 

The reality is brutally simple:

 

REAL PRICES DON’T GO UP - IT’S THE VALUE OF YOUR PAPER MONEY THAT GOES DOWN.

 

All those TRILLIONS in stolen consumer purchasing power didn’t disappear, it was just transferred to the bankster class whose money-printing stole it (by design) in the first place.

 

That fiat-looted purchasing power is now in a million elitist places like:

 

Rothschild gold vaults in France.

Political whore's estates outside Washington.

Condo’s of Goldman Sachs' mistresses in the Hamptons.

The wealth of American banking families like the Rockefellers.

The Swiss bank accounts of political globalists like the Bush family.

The balance sheets of criminal enterprises like Halliburton and Bechtel.

 

Let not forget wars all those fiat money pays for, killing people and breaking things for bankster family amusement and profit.

 

In 2010 the average American is in a world of economic hurt. Granted, the debt-fueled overspending of many dug their own financial grave. However, it's time to say out loud that the Federal Reserve Act - especially the post 1971 break from the gold standard – has been a breathtaking failure that has empowered the Elite to be able to loot the common man.

 

However, the wake up call of the Ron Paul revolution has taken the numbers who do understand from under a million to nearly a majority. A political revolt about fiat money is clearly in the offing and the only question now is: will bankster elites and their political puppets play their fiddles while the Rome they built burns, or create even more money to stay in power at any cost?

 

It's a print more money or die moment for our fiat emperors.

 

People who are savvy enough to keep most of their wealth in precious metals related holdings are not really investing; they are just correctly assuming the banksters fiat looting schemes have no end in sight, and are MOST likely to accelerate to a point where 1000 ounces of silver may soon buy an average house.

 

The bottom line in all of this: Given the overwhelming evidence that gold and silver are the only real money left in the world and all other fiat measures of prices are of no measuring value, the dumbest thing any person can do is think about ANY economic question priced in toilet paper fiat money terms and keep their money in destined-to-be-worthless fiat paper.

 

Unless of course your goal is to be dumber than a bag of hammers – or is it now, dumber than a room of BP offshore drilling experts?

 

Michael "Woody" O’Brien ChFC

mwoodyo@hushmail.com


-- Posted Thursday, 3 June 2010 | Digg This Article | Source: GoldSeek.com




 



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