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No, you have it backwards. The Gold Standard died in 1934 when the President was authorized to devalue the Dollar up to 40%. In the 70s, things were fine. It

No, you have it backwards. The Gold Standard died in 1934 when the President was authorized to devalue the Dollar up to 40%. In the 70s, things were fine. It wasn't until the 80s when the "$30/hr" bit started to fall off. How do you explain 40+ years of reasonable wages going into the crapper over the past 35? Hint: It isn't the Gold Standard which didn't change over this period in any significant way.

innguest 12y ago
In economy, changes take a long time to shows symptoms in the system. How long each change takes is anyone's guess. The gradual unpegging of gold had both immediate and long term consequences. In 1971 the US ended the Bretton Woods system, finally freeing the dollar from any pegging. (Thanks for the wrong hint) In 1973 there was the Oil Crisis. In 1979, the Fed switched its monetary policy from targeting the exchange rate to targeting the money supply, believing they were following what they called Neoliberal ideas. Do not confuse this for Libertarianism, as we wouldn't have a central bank targeting this nor that in the first place.
- opendais 12y ago
  > In 1971 the US ended the Bretton Woods system, finally freeing the dollar from any pegging. (Thanks for the wrong hint) Eh? You were complaining about inflation not foreign exchange rates. For reference you said: > In this sense, taxes are higher now, since the dollar was pegged to gold then. http://www.usinflationcalculator.com/inflation/historical-inflation-rates/ http://www.usinflationcalculator.com/inflation/historical-in... http://data.bls.gov/cgi-bin/cpicalc.pl?cost1=1&year1=1917&year2=1918 http://data.bls.gov/cgi-bin/cpicalc.pl?cost1=1&year1=1917&ye... You can verify the #s there too, cept by year to give you an idea. 1917-1918? 18% inflation Let me point out a few lines for you: 1917 12.5 15.4 14.3 18.9 19.6 20.4 18.5 19.3 19.8 19.5 17.4 18.1 17.4 1918 19.7 17.5 16.7 12.7 13.3 13.1 18.0 18.5 18.0 18.5 20.7 20.4 18.0 1919 17.9 14.9 17.1 17.6 16.6 15.0 15.2 14.9 13.4 13.1 13.5 14.5 14.6 1934 2.3 4.7 5.6 5.6 5.6 5.5 2.3 1.5 3.0 2.3 2.3 1.5 3.1 1935 3.0 3.0 3.0 3.8 3.8 2.2 2.2 2.2 0.7 1.5 2.2 3.0 2.2 Bretton Woods was for handling international exchange rates. http://en.wikipedia.org/wiki/Bretton_Woods_system#Fixed_exchange_rates http://en.wikipedia.org/wiki/Bretton_Woods_system#Fixed_exch... Do you get it now? Or are you confusing the rate for gold for the rate for real goods [e.g. Food, Housing, Labor] still?
  - innguest 12y ago
    From the site you linked: "Rates of inflation are calculated using the current Consumer Price Index" The CPI presents several problems when used to measure inflation: http://goo.gl/Ywh3T9 http://goo.gl/Ywh3T9 Members of the Bretton Woods system "were required to establish a parity of their national currencies in terms of the reserve currency" (that's the US Dollar) and "to bolster faith in the dollar, the U.S. agreed separately to link the dollar to gold at the rate of $35 per ounce of gold". When Bretton Woods ended, so did the 1 Ounce of Gold <-> $35 USD promise, and Nixon in 1971 said "I am now a Keynesian in economics".
    - opendais 12y ago
      So, basically, your argument is you ignore reality and substitute your own. The Gold Standard pegged the cost of one good [gold] to the price of the USD. It didn't magically make inflation disappear. RE: Bretton Woods Fixing the exchange rate doesn't magically make inflation disappear is a fact. The value of gold [relative to other goods] did vary overtime. Here you can see it in Oil: http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=F000000__3&f=A http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=F0... 1940's 1.02 1.14 1.19 1.20 1.21 1.22 1.41 1.93 2.60 2.54 1950's 2.51 2.53 2.53 2.68 2.78 2.77 2.79 3.09 3.01 2.90 1960's 2.88 2.89 2.90 2.89 2.88 2.86 2.88 2.92 2.94 3.09 Under Bretton Woods, it roughly tripled. If inflation does not exist on the gold standard and technology/economic efficiency of production always improves, how does this happen? Perhaps Cattle? http://nass.usda.gov/Statistics_by_State/Washington/Historic_Data/livestock/cattlmya.pdf http://nass.usda.gov/Statistics_by_State/Washington/Historic... 1944 - 10.60 1970 - 27.00 Or are you going to claim everything just magically gets more expensive over time due to "market forces"? Hint: If you do, that is inflation. RE: The CPI A) The changes you complain about are all post 1980s. So, your complaint about changes in methodology aren't relevant since they don't affect the previous measurements. B) Even if they were relevant, I can cherry pick data to BS my way to my proof if I really wanted but let us just show exactly how much reality you have to ignore to believe Schiff: "From 1970 to 1980, the CPI rose 112% according to official statistics. During the same time period, the price of Schiff’s basket of 20 goods rose 117%. This leads to a difference of just 5% points." Try paying 95% of your bills and see how that works out for you. You can't just make economic measurements up out of whole cloth and ignore entire industries. "To prove there are problems with the official CPI, Schiff calculated the price changes of a basket of 20 goods that consist of common household purchases. Schiff’s CPI basket of 20 goods included: eggs, new cars, milk, gasoline, bread, rent for a primary residence, coffee, dental services, potatoes, electricity, sugar, airline tickets, butter, store-purchased beer, apples, public transportation, cereal, tires, beef, and prescription drugs." Things in the CPI ( http://www.bls.gov/news.release/cpi.t01.htm http://www.bls.gov/news.release/cpi.t01.htm ) that he ignores: 1) People who purchase homes, which is the majority. 60+% of people own rather than rent. http://www.bloomberg.com/news/2014-07-29/u-s-homeownership-rate-falls-to-lowest-in-19-years.html http://www.bloomberg.com/news/2014-07-29/u-s-homeownership-r... So we throw out 60% of housing data [31% of the total basket] because he says so? That is sheer stupidity. 2) We ignore fuel oil and the price of the gas you buy from the utility like he does? No, we don't. http://www.eia.gov/tools/faqs/faq.cfm?id=49&t=8 http://www.eia.gov/tools/faqs/faq.cfm?id=49&t=8 Once again, he ignores 60% of households with his basket. That is 32% of the CPI basket he ignores now. 3) Medical services? Everyone needs those, he ignores those. That is another 5.8% of the CPI measure he ignores and pretends doesn't exist with his made up bullshit. That is 37.8% of normal household expenditures he now ignores. 4) He ignores CLOTHING for fuck's sake. That brings us up to 40.1% of the CPI basket he ignores. You are apparently naked. 5) He ignores the difference between eating out vs. eating in. We are up to 45.8%. No one ever eats out. Ever. Clearly, this is true. You've never eaten in a restaurant. 6) He ignores Tobacco (included in the CPI). This puts up to about 46.5% of real world purchases by households you are ignoring. So just to reiterate in Schiff (and your) reality: 1) You are naked. 2) You do not eat out. 3) You do not use the gas utilities. 4) You do not change the oil in your car. 5) You do not own a home. 6) You never utilize a physician or hospital. 7) You don't use tobacco. I don't know how you can take Schiff seriously if you do any of those 7 things. Given you aren't posting this from jail for public indecency ... I'm assuming you have to admit you wear clothes. Some other people bitching about the complete ignorance of reality: http://www.etvita.com/2013/04/peter-schiff-is-wrong-about-everything.html http://www.etvita.com/2013/04/peter-schiff-is-wrong-about-ev... http://theweek.com/article/index/258502/no-the-government-isnt-lying-about-inflation http://theweek.com/article/index/258502/no-the-government-is...

innguest 12y ago

In economy, changes take a long time to shows symptoms in the system. How long each change takes is anyone's guess. The gradual unpegging of gold had both immediate and long term consequences. In 1971 the US ended the Bretton Woods system, finally freeing the dollar from any pegging. (Thanks for the wrong hint) In 1973 there was the Oil Crisis. In 1979, the Fed switched its monetary policy from targeting the exchange rate to targeting the money supply, believing they were following what they called Neoliberal ideas. Do not confuse this for Libertarianism, as we wouldn't have a central bank targeting this nor that in the first place.

opendais 12y ago
> In 1971 the US ended the Bretton Woods system, finally freeing the dollar from any pegging. (Thanks for the wrong hint) Eh? You were complaining about inflation not foreign exchange rates. For reference you said: > In this sense, taxes are higher now, since the dollar was pegged to gold then. http://www.usinflationcalculator.com/inflation/historical-inflation-rates/ http://www.usinflationcalculator.com/inflation/historical-in... http://data.bls.gov/cgi-bin/cpicalc.pl?cost1=1&year1=1917&year2=1918 http://data.bls.gov/cgi-bin/cpicalc.pl?cost1=1&year1=1917&ye... You can verify the #s there too, cept by year to give you an idea. 1917-1918? 18% inflation Let me point out a few lines for you: 1917 12.5 15.4 14.3 18.9 19.6 20.4 18.5 19.3 19.8 19.5 17.4 18.1 17.4 1918 19.7 17.5 16.7 12.7 13.3 13.1 18.0 18.5 18.0 18.5 20.7 20.4 18.0 1919 17.9 14.9 17.1 17.6 16.6 15.0 15.2 14.9 13.4 13.1 13.5 14.5 14.6 1934 2.3 4.7 5.6 5.6 5.6 5.5 2.3 1.5 3.0 2.3 2.3 1.5 3.1 1935 3.0 3.0 3.0 3.8 3.8 2.2 2.2 2.2 0.7 1.5 2.2 3.0 2.2 Bretton Woods was for handling international exchange rates. http://en.wikipedia.org/wiki/Bretton_Woods_system#Fixed_exchange_rates http://en.wikipedia.org/wiki/Bretton_Woods_system#Fixed_exch... Do you get it now? Or are you confusing the rate for gold for the rate for real goods [e.g. Food, Housing, Labor] still?
- innguest 12y ago
  From the site you linked: "Rates of inflation are calculated using the current Consumer Price Index" The CPI presents several problems when used to measure inflation: http://goo.gl/Ywh3T9 http://goo.gl/Ywh3T9 Members of the Bretton Woods system "were required to establish a parity of their national currencies in terms of the reserve currency" (that's the US Dollar) and "to bolster faith in the dollar, the U.S. agreed separately to link the dollar to gold at the rate of $35 per ounce of gold". When Bretton Woods ended, so did the 1 Ounce of Gold <-> $35 USD promise, and Nixon in 1971 said "I am now a Keynesian in economics".
  - opendais 12y ago
    So, basically, your argument is you ignore reality and substitute your own. The Gold Standard pegged the cost of one good [gold] to the price of the USD. It didn't magically make inflation disappear. RE: Bretton Woods Fixing the exchange rate doesn't magically make inflation disappear is a fact. The value of gold [relative to other goods] did vary overtime. Here you can see it in Oil: http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=F000000__3&f=A http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=F0... 1940's 1.02 1.14 1.19 1.20 1.21 1.22 1.41 1.93 2.60 2.54 1950's 2.51 2.53 2.53 2.68 2.78 2.77 2.79 3.09 3.01 2.90 1960's 2.88 2.89 2.90 2.89 2.88 2.86 2.88 2.92 2.94 3.09 Under Bretton Woods, it roughly tripled. If inflation does not exist on the gold standard and technology/economic efficiency of production always improves, how does this happen? Perhaps Cattle? http://nass.usda.gov/Statistics_by_State/Washington/Historic_Data/livestock/cattlmya.pdf http://nass.usda.gov/Statistics_by_State/Washington/Historic... 1944 - 10.60 1970 - 27.00 Or are you going to claim everything just magically gets more expensive over time due to "market forces"? Hint: If you do, that is inflation. RE: The CPI A) The changes you complain about are all post 1980s. So, your complaint about changes in methodology aren't relevant since they don't affect the previous measurements. B) Even if they were relevant, I can cherry pick data to BS my way to my proof if I really wanted but let us just show exactly how much reality you have to ignore to believe Schiff: "From 1970 to 1980, the CPI rose 112% according to official statistics. During the same time period, the price of Schiff’s basket of 20 goods rose 117%. This leads to a difference of just 5% points." Try paying 95% of your bills and see how that works out for you. You can't just make economic measurements up out of whole cloth and ignore entire industries. "To prove there are problems with the official CPI, Schiff calculated the price changes of a basket of 20 goods that consist of common household purchases. Schiff’s CPI basket of 20 goods included: eggs, new cars, milk, gasoline, bread, rent for a primary residence, coffee, dental services, potatoes, electricity, sugar, airline tickets, butter, store-purchased beer, apples, public transportation, cereal, tires, beef, and prescription drugs." Things in the CPI ( http://www.bls.gov/news.release/cpi.t01.htm http://www.bls.gov/news.release/cpi.t01.htm ) that he ignores: 1) People who purchase homes, which is the majority. 60+% of people own rather than rent. http://www.bloomberg.com/news/2014-07-29/u-s-homeownership-rate-falls-to-lowest-in-19-years.html http://www.bloomberg.com/news/2014-07-29/u-s-homeownership-r... So we throw out 60% of housing data [31% of the total basket] because he says so? That is sheer stupidity. 2) We ignore fuel oil and the price of the gas you buy from the utility like he does? No, we don't. http://www.eia.gov/tools/faqs/faq.cfm?id=49&t=8 http://www.eia.gov/tools/faqs/faq.cfm?id=49&t=8 Once again, he ignores 60% of households with his basket. That is 32% of the CPI basket he ignores now. 3) Medical services? Everyone needs those, he ignores those. That is another 5.8% of the CPI measure he ignores and pretends doesn't exist with his made up bullshit. That is 37.8% of normal household expenditures he now ignores. 4) He ignores CLOTHING for fuck's sake. That brings us up to 40.1% of the CPI basket he ignores. You are apparently naked. 5) He ignores the difference between eating out vs. eating in. We are up to 45.8%. No one ever eats out. Ever. Clearly, this is true. You've never eaten in a restaurant. 6) He ignores Tobacco (included in the CPI). This puts up to about 46.5% of real world purchases by households you are ignoring. So just to reiterate in Schiff (and your) reality: 1) You are naked. 2) You do not eat out. 3) You do not use the gas utilities. 4) You do not change the oil in your car. 5) You do not own a home. 6) You never utilize a physician or hospital. 7) You don't use tobacco. I don't know how you can take Schiff seriously if you do any of those 7 things. Given you aren't posting this from jail for public indecency ... I'm assuming you have to admit you wear clothes. Some other people bitching about the complete ignorance of reality: http://www.etvita.com/2013/04/peter-schiff-is-wrong-about-everything.html http://www.etvita.com/2013/04/peter-schiff-is-wrong-about-ev... http://theweek.com/article/index/258502/no-the-government-isnt-lying-about-inflation http://theweek.com/article/index/258502/no-the-government-is...