The Day the Dollar Died
Chart of the Week #4
Today's chart shows what has happened to the U.S. money supply since 1971, when Nixon severed the dollar's last tie to gold, thus ending the Bretton Woods system established after World War II.
The predictable result?
The basket of goods and services used to calculate consumer price inflation (CPI) cost 41 cents in August 1971. By August 1981, that same basket cost 92 cents. This means the dollar lost 56% of its purchasing power in just 10 years.
Today, the dollar we use can buy about 90% less than its equivalent from the early 1970s.
It's truly one of the greatest tragedies of our time, and sadly, most Americans are completely oblivious to it.
Nevertheless, I hope you manage to enjoy the rest of your weekend!
Lau Vegys
PARDON CAPS ALMOST BLIND
THAJKS LAU. AS ALWAYS, YOU SPEAK, LOUDLY , CLEARLY, AND CONCLSELY. AND YOUR CHART PROCLAIMS THIS MESSAGE QUITE GRAPHICALLY I AM SURE, FOR THOSE WHO HAVE EYES TO SEE. UNFORTUNATELY, I AM NOT AMONG THEM. BUT, YOUR WORD ON IT, IS GOOD ENOUFG FOR ME.
AS I UNDERSTAND LAU, IT TAKES ONE DOLLAR TO BUY TODAY, WHAT 10-11 CENTS BOUFGHT IN 1971. NOW, WOULD SOMEONE PLEASE TELL ME IF I HAVE MISCONSTRUED LAU'S WORDS.
INCIDENTALLY, I WOULD CHANGE YOUR TITLE TO SOMETHINMG LIKE, "THE DAY THE DOLLAR WAS DEALT ITS DEATH BLOW".
BILL BONNER OF BONNER PRIVATE RESEARCH SUBSTACK SAID IN HIS DAILY MISSIVE OF ABOUT APRIL 8, 2024, THAT THE U.S. WILL REACH A TIPPING POIINT SOMETIME DURING THE NEXT PRESIDENTIAL TERM. HE CLARIFIED BY SAYING THAT SOMETIME DURING THE NEXT FOUR YEARS, THE U.S. WILL BE REACHING A POINT WHEN THE INTEREST ON OR NATIONAL DEBT WILL EXCEED OUR GDP---THAT IS, INTEREST ON DEBT WILL EXCFFD INCOME. IN OTHER WORDS, THE U.S. WILL HAVE REACHED A POINT OF NO RETURN---A DEATH SPIRAL. IN OTHER WORDS , THE U.S FINANCIAL SYSTEM WILL CRASH AND BURN. UNLESS, UNLESS, UNLESS, WE ACT NOW TO ELECT A PRESIDENT WHO WILL STOP DEFICIT SPENDING AND REVERSE IT. MOST READERS HERE KNOW THAT BILL BONNER IS ONE OF OUR NATION'S FOREMOST ECONOMISTS---DEEPLY STEEPED IN AUSTRIAN ECONOMICS, CAPITALISM, FREE MARKETS, FREEDOM, AND ALL THINGS RELATED TO LIBERTARIAN PHILOSOPHY. WHEN BILL SAID WE ARE REACHING A POIJNT OF NO RETURN---THAT WAS A WAKE UP CALL. IT CERTAIMLY WOKE ME UP! I HAVE BEEN FEVERISHLY POSTING MESSAFES AT BONNER PRIVATE PARTNERS FOR THGE PAST MONTH AND A HALF. NOW THAT I HAVE QUITE THOROUGHLY EXPRESSED MY THOUGHTS THERE, I SHALL BEGIN TO POST THOSE THOUGHTS TO THIS AUDIENCE.
BY WAY OF INTRODUCTION, I HAVE BEEN AN ARDENT ABMIRER AND FOLLOWER OF DOUG CASEY SINCE AT LEAST HIS APPEARANCE ON THE PHIL DONAHUE SHOW IN THE MID
TO LATE 70's. DOUG AND I HAVE TAGGED MANY OF THE SAME BASES IN OUR SEPARATE LIVES. I FEEL A KINDRED SPIRIT WITH DOUG. I HAVE THESE SAME PARALLEL BASES AND FEELINGS ABOUT BILL BONNER.
ADDITIONALLY, I HAVE REMAINED AN ADMIER AND FOLLOWER OF MANY OF THEIR ASSOCIATES AND PROTEGES RIGHT DOWN TO TODAY. THEY INCLUDE, TO MEMORY: RICK RULE, LOUIS JAMES(LOBO TIGRE), DAVE GALLAND, CHRIS MAYER, NICK GIAMBRUNO, MARIN KATUSA, E. B. TUCKER, JEFF THOMAS, PORTER STANSBURY, MATT SMITH, CHRIS MCINTOSH, DAVID STOCKMAN AND LAU VEGYS . AND OF COURAE BILL'S CURRENT PROTEGES: DAN DFNNING, TOM DYSON AND JOEL BOWMAN. I WOULD BE REMISS IF I DID NOT ALSO GIVE CREDIT WHERE CREDIT IS DUE, TO STEVE SJUGGERUD, DOC EIFRIG, DAVE LASHMET, AND DAN FERRIS. ALSO ,TWO NEW HEROES AT PORTERCO: MARTY FRISON AND ERES KALIR. AND FINALLY, TRIBUTE TO THE VERY PRESCIENT, LATE, MR. JAMES DINES, RIP.
I CANNOT MENTION NAMES LIKE CASEY, BONNER, DINES AND RULE WITOUT SAYING, THAT I HAVE BEEN PRIVILEGED TO HAVE LIVED AMONG GIANTS AND HAVE BEEN BLESSED BEYOND MEASRE BY THEIR WISDOM.
I INTEVDED TO ADD MUCH MORE, BUT I AM DOZING AT THE WHEEL, SO WILL CONCLUDE MY THOUGHTS IN ANOTHER COMMENT HERE TOMORROW. I PROMISE.
SINCERELY ,
LIAM
Inflation seems to be always and everywhere a government phenomenon