Categories

Economy & Politics

Tools

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


    Founders Would Approve Of Arizona’s Meddling
    The Delusions Of Venezuela And Argentina
    Lobbyists Pray For Clinton Restoration
    Nemtsov’s Murder Defines Putin’s Russia
    When Will Republicans Start Governing?
    Nemtsov’s Murder Shakes Russian Opposition
    US Savings Rate Surges To Highest Since 2012 As Consumers Save “Gas Tax Cut” Instead Of Spending
    Bill Gross: “Central Banks Have Gone Too Far In Their Misguided Efforts To Support Economic Growth”
    This Is The Chinese Documentary That Got Over 30 Million Views In One Day
    David Stockman Warns “It’s One Of The Scariest Moments In History”
    Corruption Crackdown Costs – Macau Casino Revenues Collapse “Shockingly Bad” 53%
    Are Central Banks Creating Deflation?
    The $100 Trillion Reason The Fed Is Terrified Of Deflation
    The Best States For Business
    ECB Uncomfortable With Leading Role In Greek Funding Drama


    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.

    Euro Zone Feb Prices Fall Less Than Expected, Unemployment Down
    China February HSBC PMI At Seven-month High
    Near Fed Majority Backs June Liftoff Yellen Hasn’t Yet Endorsed
    New Internet Rules Set Up Industry’s Next Battle
    Schaeuble Expects Germany To Boost Spending On Defense, Security
    Despite Greece, Euro Zone Is Turning The Corner
    Can Obama’s Iran Deal Outlive His Presidency?
    China’s Real Property Problem
    CPAC Is Useful And Overrated
    Net Neutrality’s Only Certainty
    Here Is What Americans Spent Their “Gas Savings” On
    Q4 GDP Revised Down To 2.2% From 5.0%: Full Breakdown
    The Stage Is Set For The Syrian Invasion
    Provocation? NATO Conducts Military Maneuvers 300 Yards From Russia’s Border
    Meet Londoner Mohammed Emwazi – ISIS Chief Executioner ‘Jihadi John’
    The Global Economy Is Not “Off The Lows”
    When And Why Government Debt Could Become A Major Problem
    GDP Up 2.2%, Under 2.6% Initial Estimate
    Battles Loom Over Tough Net Neutrality Rules
    Hedge Fund Mogul Sues U.S. Attorney, FBI
    Double-digit Growth Is Coming To India, But Its Chief Economist Is Still Puzzled
    Germany Backs Greek Extension But Bailout Fatigue Grows
    Lower Gasoline Prices Dampen U.S. Consumer Inflation
    Capital Goods Shipments Tumble, 6th Miss In A Row
    U.S. Posts First Negative Inflation Print Since Lehman On Gas Price Plunge
    Initial Jobless Claims Surge Most Since 2013
    Caught On Tape: Florida Parents Treated Like Children For Questioning School Curriculum
    TEPCO Admits Delaying Report Of Major Radiation Leak Into The Pacific Ocean For 10 Months
    100 Reasons Why Janet Yellen Should Be Freaking Out About A Fed Audit
    Brazil Consumer Confidence Collapses To Lowest. Ever.
    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.