Thursday, April 10, 2008

fed inflation chart!

This federal reserve chart tells the story about their little inflation game! scroll down to the second inflation calculator and imput some numbers, for example, in 1987 I was making $7.35 an hour, they have inflated the doller so much that is equal to $19.50 today! inflation averaged about 3% in the 19oo's and perhaps 5-6% in the past decade, for example $50,000 put into a savings in 1929 at 2% interest would be about $240,000 or so yet in buying power it would be only $10,000 next to the $50,000 you put in in 1929!!! so it lost 80% of its value even though your savings read 240,000! SO the place NOT to put your money is dollars or any fiat currency, if you bought silver buillion in 1995 for $4.00 an ounce, you would at least quadrupled your money when converted back to dollars, but keep in mind that the dollar has lost about two thirds of its value since then but you are still ahead.
http://www.moneychimp.com/articles/econ/inflation_calculator.htm