Categories

Economy & Politics

Tools

  • Economy & Politics
  • Investing
  • Personal Finance
  • Related Posts


    Here’s Who Should Be Happiest About Falling Oil Prices
    China May Be Hacking Every iPhone User In The Country
    The Prepper’s Library
    It’s Good To Be Friends With Sen. Kay Hagan, As Long As She Can Get Re-elected
    More People Loathe Harry Reid Than Koch Brothers
    Minimum Wage Group Offers Pay That Undercuts The Wage They’re Demanding
    Stunning Scenes From California’s Central Valley Drought
    The Pentagon Will Use 30 Person ‘Quick-Strike Team’ To Deal With Domestic Ebola Patients
    Our New Robot Overlords & The Third Type Of Capital
    The Wolf Appears
    Karl Rove Suppressed WMD Discoveries
    The Dark Winter Exercise And The Current Ebola Problem
    Cronyists, Fake Libertarians, And Poker Regulation
    John Oliver Shreds U.S. Over Afghan Translators On ‘Last Week Tonight’
    Transgender Military Service, Ebola, China’s Navy In The Week Ahead


    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.

    Discuss this Story:

    Comment Policy: We encourage open discussion. Comments including racist statements, profanity, name calling or spam will be removed at our discretion. We use filters for spam protection. If your comment does not appear it is likely because it violates the policy.

    It’s Time To Export American Energy
    GOP Lawmakers: Congress Should Pass Ebola Travel Ban
    Getting Used To The ‘New Mediocre’
    Ukraine Says Russia Has Agreed To Supply Gas
    Highly Educated, Unemployed And Tumbling Down
    8 States With The Longest Commute Times
    7 States Where The Most People Work From Home
    Barack Obama Is A Conservative Plant
    Nashville Cops Defy The Secret Service, Refuse To Violate The 4th Amendment
    Obama Administration Has Prosecuted Media Leakers More Than All Other Presidential Administrations Combined
    The Obama Administration’s Only West African Travel Ban Applies To U.S. Soldiers In The Hot Zone
    Ben Carson Bootstrap PAC Claims More Than $10 Million In Fundraising
    Define Irony: Janet Yellen Talks Inequality, Has Some Advice – Start A Business, Get Rich Parents
    60% Of California Will Remain In Drought Through Winter, NOAA Warns
    Ebola-Handling Healthcare Worker Currently On A Caribbean Cruise Ship
    Hyperinflation Doesn’t Scare Kuroda But Ex-BoJ Chief Says “Quit While You’re Ahead”
    3 Things Worth Thinking About
    Now Comes The “Specter Of Deflation”: The Money Printers’ Latest Scam
    Barack Obama: The Concern-Troll Of The 1%
    Which One Is Worse: Racism Or Ebola?
    How Biomedical Research Fails The Nation Why No One Cares
    Sarah Palin: Prophet
    For The Next Attorney General, A Modest Suggestion: Fix Presidential Pardons
    NSA Documents Suggest A Close Working Relationship Between NSA, U.S. Companies
    Charter School Power Broker Turns Public Education Into Private Profits
    At Least 113 Staffers At U.S. Fed Earn More Than Yellen
    Japan To Roll Out Aerospace Hope With First Commercial Jet In Half A Century
    U.S. Farmers Seen Cutting Fertilizer Use As Crop Prices Slide
    The Democrats’ Sleaziest Ad Yet
    Houston Subpoenas Sermons Of Pastors Who Oppose Homosexuality From The Pulpit
    Read more from Economy & Politics...

    Liberty Investor Digest

    Get today's most important
    financial headlines all in
    one place by email!



    Sources


    close[X]

    Sign Up For Liberty Investor Digest™!

    Get Liberty Investor Digest FREE By Email!

    Input your name and email address in the fields below and get today's most important financial headlines sent straight to you inbox!

    Privacy PolicyYou can opt-out at any time. We protect your information like a mother hen. We will not sell or rent your email address to anyone for any reason.