Wednesday, December 9, 2009

Paper Money

I stumbled across an interesting article while browsing on Jim Sinclair's site last night. The article is entitled :

Here's a snippet that really needs to be read more than once:
The chart above shows how the purchasing power of the dollar has declined in real money – gold – in the last 10 years. And if we take the period from 1909 to 2009 it shows the total destruction of paper money. In 1909, $1,000
bought 50 ounces of gold. Today it buys 0.83 ounces. This means that in the last 100 years the dollar has declined by 98.3% against gold. So in real money terms
the dollar is now only worth 1.7% of what it was worth a
century ago. Thus, the US government (as well as most other governments) has totally destroyed the value of real money by issuing unlimited amounts of paper money and in the next
few years they will also kill off the remaining 1.7% of value to make the paper dollar reach its intrinsic value of zero.
This silent devaluation of our wealth is a brutal , almost hidden tax that the masses continue to be oblivious to.

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