"That headline is nothing new to most people, but you may never have seen such a long term view of gold prices before. This week’s chart looks all the way back to 1792 at the value of gold expressed in dollars per ounce. If we assume that gold’s real value stays constant over time, and that its price is a statement about the value of the dollar, then this chart is a good representation of the debasement of the dollar by virtue of how many more dollars it takes to buy an ounce of gold.
It is called “debasement” because when it happens, ‘de value of ‘de dollar goes down to ‘de basement.
We have been going through a financial crisis since 2007 when the real estate bubble collapsed, and the Fed’s efforts to resuscitate the economy have tripled the price of gold from its early 2007 levels. But the rise in gold prices was going on since 2001, long before anyone ever heard of “quantitative easing”.
at http://pragcap.com/gold-price-is-a-measure-of-the-dollars-debasement
It is called “debasement” because when it happens, ‘de value of ‘de dollar goes down to ‘de basement.
We have been going through a financial crisis since 2007 when the real estate bubble collapsed, and the Fed’s efforts to resuscitate the economy have tripled the price of gold from its early 2007 levels. But the rise in gold prices was going on since 2001, long before anyone ever heard of “quantitative easing”.
at http://pragcap.com/gold-price-is-a-measure-of-the-dollars-debasement
