Monday, September 29, 2008
When I say that the US$ will collapse, I mean to say that the steady loss in purchasing power will accelerate, perhaps 4 or 5 times faster than it has over the past 50 years. Ergo, whatever percentage in purchasing power the US$ lost in the past 50 years will be accomplished over the next 10 years or so.
My favorite apples to apples comparison, or metric, is the cost of mailing a first class letter. There are no other calculations that need to be made for "new and improved" whatever. The service is the same.
In September of 1958, the cost of a first class stamp was 4 cents.
In September of 2008, 50 years later, the cost of a first class stamp is 42 cents.
Notice anything? The U.S. $ has lost collapsed over 90% in 50 years.
My bet is this:
In 2018, a first class stamp will cost between $3 and $6.
Wanna see me do the same trick for a McDonald's Happy Meal? Or a gallon of gasoline? Or a loaf of bread?
Now, this is all sort of OK, as long as the median after tax income performs similarly. My bet is that it will not, and by a SIGNIFICANT shortfall.
I hope this clarification helps the Doomers AND the Cornicopians.
Mentatt (at) yahoo (d0t) com
Posted by The Short Story Man at 6:15 AM