Friday, March 11, 2005
CRB P&F Chart
Do you know where Gold was the last time the CRB was at these levels?
---------------------------CRB--------Spot Gold
6/30/1980--------------286.40--------647.4
7/31/1980--------------302.30--------619.7
8/29/1980--------------308.40--------635
9/30/1980--------------319.40--------671.5
10/31/1980-------------327.10--------636
11/28/1980-------------334.80--------624.6
12/31/1980-------------308.50--------591.3
(Statistics courtesy of Dan Norcini)
Here's a picture of the USD over almost the same time period.
Some say that inflation is the cruelest tax. "What do I care if the USD goes down", you say. Suppose in 2001, you planned on buying an imported car. The USD was 1.20 to the Euro and the new BMW was $20,000 $22,500. You decided the time wasn't right and now it is, in 2005. But now the USD is .8 to the Euro and the same car is now $30,000. Since the government causes inflation by printing money without anything to back it, they just picked your pocket for $10,000 $7,500, even though they lowered your taxes. They devalued your currency by 33% and you didn't even know it.
Mover Mike
