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Friday, 22 July 2011

Paper money? Coins?.............from Rico

Once upon a time, in a land that no longer exists, if you had a paper $50 bill and a Gold (1oz) $50 coin, they were worth the same. You could 'trade' them one for the other all day, every day.

Today, if you have a paper $50 bill, you have a $50 bill...albeit with greatly diminished purchasing power. On the other hand, if you have a 1oz Gold coin, it's worth roughly 1500-1600 paper $ Dollars.

It's not that the value of Gold or Silver is increasing, it actually remains fairly constant, but rather that the purchasing power (value) of a paper $ Dollar (Federal Reserve Note) is sinking so that it takes increasing quantities of paper notes to buy the same value. This is INFLATION, and also why Central Bankers lie to you about it.

This is also why the gas station owner in Oregon is accepting coin silver (90% silver) for gasoline...just look at what the 'old' pre-1964 silver coins are worth.





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