The one thing about selling gold coins that were bought at $809, and now could be sold around $1890, is the question of purchasing power.
Have I really gained that much, or how much purchasing power have I lost since then ? I can't imagine that its been that much, since things aren't more than twice as expensive as they were in Oct. of '08. I can't buy stocks as cheaply as I could back then, or as in early '09.
Or is this a time lag situation whereby the goods and services we buy are about to get dramatically more expensive ?
I suspect if something happened between us and China, whereby we could get many of our goods imported as cheaply, or even imported this cheaply from other countries, it would be a possibility we could see dramatic increases in our goods paid. The only things I can think of that would cause such a sudden increase are:
+ Dramatic and sudden increase in oil to over $200/bbl
+ a run on treasuries (out of them) and out of dollars due to some sort of a direct default
+ sudden and massive trade tarriffs and other barriers
+ The US Fed announcing some sort of formal 2 for 1 currency split. You get one dollar for the price of 2.
Which of the 4 above scenarios has the least expected chance of occurring, and maybe I have the answer to my question ?
Have I lost this much purchasing power ?
Started by
nimblebear
, Aug 22 2011 02:03 PM
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