In the past, the value of the dollar was tied to gold - it had real value, $35/ounce. In 1971 we went off the gold standard. I've never been entirely clear what the reasoning was; all I can say is, I'm glad I bought my college class ring before then - it's an ounce of gold. Now the value of the dollar isn't tied to anything real, and the US dollar price of gold is one measure of the world's belief in the American economy.
Various web sites will let you track the history of the price of gold through the years. During the Clinton years the price of gold dropped from $329 to $265 - the dollar became 20% stronger. It was the first time since 1979 it had been that strong.
Today, in just 7.5 years, it's exploded to $869. Your dollar is worth 3.3 times less in the world market than it was when W took office. From http://goldprice.org/live-gold-price.html:
I'll have more to say later about why I think this is happening. (It's not all Bush policies.)
No comments:
Post a Comment