posted on Oct, 20 2009 @ 09:35 PM
Originally posted by Kaytagg
If a bunch of people are in debt (and the US government), wouldn't a small amount of inflation help ease the debt?
A LITTLE BIT
? Ya got to be kidding!
A dollar today, 2009, now buys about 3.5 cents, compared to the dollar in 1913 -- how on Earth can you call that a "little bit"?
In other words, a dollar today now buys .035% as much as it did back then.
Three and a half pennies on the dollar.
So let's say that you held some FRNs -- 100 of those 1-dollar bills from the 1920s (ignoring the collector's value of those now-rare notes) -- and
you were to spend that 100 dollars on gold today, you would get about 1/10th of an ounce of gold today; back then, you would have gotten 4 ounces of
gold with that same money.
1/10th of an ounce of gold vs. 4 ounces
of gold today.
And if you spent the old 100 dollars on 4 ounces of gold back then, those 4 ounces of gold today would be worth $4,200! BIG DIFFERENCE!
[edit on 20-10-2009 by Historical-Mozart]