3 ms·
Krugman, the same fella who commented on the internet and on bitcoin? He represents everything that’s wrong with government excesses and theft of its citizens
by whb07 6y ago
Krugman, the same fella who commented on the internet and on bitcoin?
He represents everything that’s wrong with government excesses and theft of its citizens via inflation.
50 years ago an ounce of gold was $35/oz. Today that very same 1 oz gold coin is at $2000.
- lebed2045 6y agoaside of Krugman, $35 worth of goods and services in 1970 worth about $233 according to https://www.officialdata.org/us/inflation/1970?amount=35 https://www.officialdata.org/us/inflation/1970?amount=35, so it's not currency problem but the gold itself went up.
- AnimalMuppet 6y agoIt's not that simple. The government fixed the price of gold at $35 in (IIRC) 1933 or so. [Edit: 1934.] They kept the same price until 1970 or so, when they allowed gold to float. Then all the inflation from 1933 to 1970 showed up in a sudden run-up in the price of gold. That is, the price of gold in 1970 was highly distorted. It was not a market price. You can't use that price as your starting point.
- ac29 6y agoYou've very conveniently picked a time frame where gold was at a century-long low, to a century-long high. One could easily pick an opposite period, such as 1980-2000, where values dropped precipitously.