Are Gas Prices Really Going Up?
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In summary:
In 1947 gas was $.25/gallon
In 1947 the price for a 1/4 ounce of silver was $.25
In 2008 the price for a 1/4 ounce of silver is a little over $4
In 2008 the price for a gallon of gas is $4
Similarities? Inflation?
posted by General Ledger @ 4:13 PM
4 comments
4 Comments:
That's what happens when you have a smoke and mirrors Federal Reserve system. Any kind of Central Bank that fabricates money by pulling it out of its butt will do this to an economy.
Money is a kind of battery.
You're work = some money
Meaning, you work and you get some money that represents the work that you performed. The comparison with a battery is that it has a charge that you can use later; so it is with money, it keeps a "charge" that you can use later.
The Central Bank / Federal Reserve system that creates money out of nothing causes the money that we have to loose value.
This is like a battery loosing its charge.
So you work, you get some money, but your previous work is devalued every day as the Central Bank loans out more imaginary money.
Pretty much sucks.
http://inflationdata.com/inflation/images/charts/Oil/Gasoline_inflation_chart.htm
Is your "previous work" really "canceled out"? If I buy a widget for $1 in 1980 and sell it for $2 in 2008 (forget depreciation), I really haven't lost any money because the value of the widget is increasing at about the rate of inflation.
If I buy a share of Acme Co. in 1980, the value of that share is going to change with inflation because the company's income and assets are going to adjust with inflation.
(I'm not praising the Fed here or anything, I'm just saying that I don't see how uniform inflation really hurts anything, unless you're keeping a big stash of cash under your mattress.)
The largest 'personal' problem I see with inflation, is that income (i.e. Salaries) are one of the last things to increase.
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