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> Prices change continuously. You can never be sure what the price of anything is going to be next week. With a decent central bank you can, as the rate of inf

> Prices change continuously. You can never be sure what the price of anything is going to be next week. With a decent central bank you can, as the rate of inflation is fairly predictable: * https://en.wikipedia.org/wiki/Inflation_targeting https://en.wikipedia.org/wiki/Inflation_targeting We've recorded some of the most stable prices in the last few decades with that policy: * https://en.wikipedia.org/wiki/Great_Moderation https://en.wikipedia.org/wiki/Great_Moderation as compared to when the gold standard was around: * http://archive.is/https://www.theatlantic.com/business/archive/2012/08/why-the-gold-standard-is-the-worlds-worst-economic-idea-in-2-charts/261552/ http://archive.is/https://www.theatlantic.com/business/archi... And gold isn't as stable as most people think: * https://www.macrotrends.net/1333/historical-gold-prices-100-year-chart https://www.macrotrends.net/1333/historical-gold-prices-100-... even in the modern age: > The idea behind a gold standard is that a currency becomes tied to a commodity with a stable value. The great problem with this is that gold does not have a stable value. Like any other commodity, its relative value goes up and down. For instance, in September 2022, US dollar milk prices were rising over 16%. In gold terms milk prices were rising over 23%—dangerously high inflation. * https://www.ubs.com/it/en/wealthmanagement/insights/article-adp/global/en/wealth-management/insights/chief-investment-office/market-insights/paul-donovan/2024/gold-currency.html https://www.ubs.com/it/en/wealthmanagement/insights/article-...

john_texas 2y ago
The "stability in CPI" after the gold depeg in the 70s is also when wages stopped growing in real terms. Most "wealth creation" since that date is on paper.
- throw0101b 2y ago
  > The "stability in CPI" after the gold depeg in the 70s is also when wages stopped growing in real terms. The depeging occurred in 1971: * https://en.wikipedia.org/wiki/Nixon_shock https://en.wikipedia.org/wiki/Nixon_shock the CPI didn't start going crazy until the mid- to late-1970s: * https://en.wikipedia.org/wiki/1973_oil_crisis https://en.wikipedia.org/wiki/1973_oil_crisis * https://en.wikipedia.org/wiki/1979_oil_crisis https://en.wikipedia.org/wiki/1979_oil_crisis * https://en.wikipedia.org/wiki/Supply_shock https://en.wikipedia.org/wiki/Supply_shock though there was a rising amount before any of those events: * https://www.federalreservehistory.org/essays/great-inflation https://www.federalreservehistory.org/essays/great-inflation You'll find that real wages in the US were fairly steady for most of the 1970s, falling mostly at the end, and really dropping during the 1980s: * https://www.factcheck.org/2019/06/are-wages-rising-or-flat/ https://www.factcheck.org/2019/06/are-wages-rising-or-flat/
- red-iron-pine 2y ago
  most wealth creation being on paper is because labor stopped getting paid and capital saw all the growth kinda like how despite all of the inflation the average person only saw a 3% increase in actual take homes while the hyperwealthy saw 300% (of much, much larger numbers). it ain't gold, it's greed
  - john_texas 2y ago
    [dead]

john_texas 2y ago

The "stability in CPI" after the gold depeg in the 70s is also when wages stopped growing in real terms. Most "wealth creation" since that date is on paper.

throw0101b 2y ago
> The "stability in CPI" after the gold depeg in the 70s is also when wages stopped growing in real terms. The depeging occurred in 1971: * https://en.wikipedia.org/wiki/Nixon_shock https://en.wikipedia.org/wiki/Nixon_shock the CPI didn't start going crazy until the mid- to late-1970s: * https://en.wikipedia.org/wiki/1973_oil_crisis https://en.wikipedia.org/wiki/1973_oil_crisis * https://en.wikipedia.org/wiki/1979_oil_crisis https://en.wikipedia.org/wiki/1979_oil_crisis * https://en.wikipedia.org/wiki/Supply_shock https://en.wikipedia.org/wiki/Supply_shock though there was a rising amount before any of those events: * https://www.federalreservehistory.org/essays/great-inflation https://www.federalreservehistory.org/essays/great-inflation You'll find that real wages in the US were fairly steady for most of the 1970s, falling mostly at the end, and really dropping during the 1980s: * https://www.factcheck.org/2019/06/are-wages-rising-or-flat/ https://www.factcheck.org/2019/06/are-wages-rising-or-flat/
red-iron-pine 2y ago
most wealth creation being on paper is because labor stopped getting paid and capital saw all the growth kinda like how despite all of the inflation the average person only saw a 3% increase in actual take homes while the hyperwealthy saw 300% (of much, much larger numbers). it ain't gold, it's greed
- john_texas 2y ago
  [dead]