Categories

Economy & Politics

Tools

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


    Why California Needs Thirsty Alfalfa
    Israel Thanks Obama For Keeping Its Nuclear ‘Secret’
    Russia Is Using Mobile Crematoriums To Hide Ukraine’s Dead
    China’s Growing Meth Addiction
    China’s Pivot To Latin America
    Durable Goods Orders Slide YoY 4th Month In A Row Despite Dramatic Upward Revisions
    Chinese State Paper Warns ‘War Will Be Inevitable’ Unless U.S. Stops Meddling In Territorial Dispute
    Global Trade Dives Most Since The Financial Crisis
    How The Saudis Wag The Washington Dog
    ISIS Planning U.S. Nuclear Attack In Next 12 Months
    What Exactly Is Going On At Lake Mead?
    The Only Hillary Alternative
    The Chinese And U.S. Economies Are Bubble-Thin
    Inequality And A Solution’s Missing Ingredient
    Baby Boomers Invite Millennials To Their Office Party, But Many Don’t Stay Long


    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.

    Signs Of Revival In Business Investment Seen In April Durable-goods Report
    Obama Turns To City Halls To Get Around Congress
    Spain Veers Left, And Toward Uncharted Territory, In Elections
    New Database Reveals Pay At America’s Biggest Companies
    Fed’s Fischer: Too Much Weight Placed On Fed’s First Rate Hike
    How ‘Mathiness’ Made Me Jaded About Economics
    U.S. Bets On Egypt While Ignoring Tunisia’s Success
    Hillary Keeps It Boring
    GOP 2016 Candidates Are New And Improved. The GOP Isn’t.
    Fox To Candidates: Go Nuts. On Camera. Please.
    Suicide Bomber Detonates In Saudi Mosque, ISIS Suspected
    George Soros Warns ‘No Exaggeration’ That China-U.S. On ‘Threshold Of World War 3′
    Welcome To The Oligarch Recovery: 82% Of US Construction Is Luxury Units
    US Retaliates At China Escalation, Warns Sea “Sandcastles” May “Lead To Conflict”
    The Fallacy Of Unequivocal Faith In The Fed’s Babbling Bubble-Blowers
    Ron Paul On The Public Debt And The Collapse Of The Dollar
    Another Political News Site, But This One Will Sell You Things
    Bernanke And Yellen Don’t Understand How The Economy Works
    How Will Generation Z Disrupt The Workplace?
    Jobless Claims Rise Slightly Last Week
    Supreme Court 401(k) Ruling Latest Shift In Favor Of Retirement Savers
    China, India Likely To Be Biggest Shareholders In AIIB
    House Panel Issues Subpoena To Fed Over 2012 Information Leak
    Senate Advances Fast-track Trade Bill Sought By Obama
    2016 Might Look Safe To Democrats. But 2024?
    A Backdoor Way To End The Fed
    Israel Fears Obama Will Stop Hiding Its Nuclear ‘Secret’
    Republicans Chase Imaginary Rockefellers
    Chicago Fed Contracts For 4th Month In A Row As Initial Jobless Claims Hover Near 40 Year Lows
    The Fed’s Computer Model Of The U.S. Economy ‘Sees Little Slack’ (And A Big Clue From Gartman)
    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.