Nominal And Real Dollars

Here is the story that nobody will tell you.

Each day, the mainstream media put a positive twist on the stock market. The monetary authorities know that a booming stock market brings euphoria and spending by the population. They dare not reveal this graph showing that stocks are actually in a downtrend against gold. Not one in a million investors suspects that their holdings denominated in fiat dollars are losing value daily.

DJI in Gold Instead of Dollars
Graph courtesy of Jan. 14, 2013 report of
James Dines & Co, Inc., dinesletter.com

Warren Buffett is hailed as the great billionaire investor, but there’s never a word that his fiat empire is actually losing value measured against gold. The graph above shows that the Dow Jones industrial index, as denominated in fiat paper dollars, is in a super bear market. This also proves that there is a super bear market in fiat currencies.

This is a chart that is the basis of mass confusion, though it is very simple. It involves two kinds of dollars, nominal and real dollars.

Nominal dollars affect our lives most, because these are everyday changing dollars. They change because the U.S. government changes them by constantly devaluing (diluting) them by printing massive amounts of new dollars.

These nominal dollars are quicksand to the assets of millions of Americans. They are the monetary unit used in contract law as well as millions of everyday transactions. Americans depend on nominal dollars, so their everyday lives are full of deception and false hope.

Nominal (changing) dollars make a total mockery of the huge U.S. stock market. Depreciating currency creates the illusion that stocks are gaining in value; whereas if measured in real and permanent value as gold and silver, stocks are constantly losing value. The chart illustrates that.

Real dollars are actually imaginary dollars because they remain constant and do not change in a set value. But they are a measuring comparison of the great losses in nominal devaluing dollars.

Bob Livingston is an ultra-conservative American who has been writing a newsletter since 1969. Bob has devoted much of his life to research and the quest for truth on a variety of subjects. Bob specializes in health issues such as nutritional supplements and alternatives to drugs, as well as issues of privacy (both personal and financial), asset protection and the preservation of freedom.

| All posts by Bob Livingston

Join the Discussion:

One Response to "Nominal And Real Dollars"

Comment Policy: We encourage an open discussion with a wide range of viewpoints, even extreme ones, but we will not tolerate racism, profanity or slanderous comments toward the author(s) or comment participants. Make your case passionately, but civilly. Please don't stoop to name calling. We use filters for spam protection. If your comment does not appear, it is likely because it violates the above policy or contains links or language typical of spam. We reserve the right to remove comments at our discretion.

  1. jim says:

    Brilliant! Insightful, too, if you will follow the peanut in this shell game.
    When I try to talk to people that obama’s Fed is printing—out of thin air—$85B per month–PER MONTH!–and ask them what that annualizes out to, these poor people who only have a sad college degree or three, look at me blankly.
    FOLKS, THAT’S OVER A TRILLION DOLLARS IN FUNNY MONEY ONLY! It doesn’t count their “deficit spending” or real inflation or a hundred other ways that they are flushing the country down. Can anyone spell inflation? Devaluation?

    The only moral to our story is, it’s gonna be hell to pay, when the elected monkeys again do what elected monkeys do, screw the country while they make sure that their fat is NOT in the fire.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Connecting to %s

eNews & Updates

Sign-Up Here For FREE Alerts from
Liberty Investor Digest.

From The Web

%d bloggers like this: