GREY:NEVDQ - Post by User
Comment by
bogfiton Feb 05, 2022 8:59am
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Post# 34400700
RE:The US dollar is going down
RE:The US dollar is going down I suppose that it is only natural for many to still see Macroeconomics from the stand point of the US economy and USD. After all, for decades American business activity led the world and dictated the economic path forward. Now 30 years later, after the rusting out of America manufacturing, sending millions of jobs overseas, and creating a consumer class in Asia; assessing only the economic outlook for the U.S. is likely to present a false projection. The reality of today is that our individual lives, our investment successes and opportunities are no longer solely dependent upon America’s GDP.
They say the longer the trend the stronger it becomes. Well. since I entered the markets in 2002 there has been a consistent trend of a falling dollar.
2002
- Fresh eggs (1 dozen): $1.03 ($1.49 in today’s dollars)
- White bread (1 pound): $1.02 ($1.48 in today’s dollars)
- Sliced bacon (1 pound): $3.24 ($4.69 in today’s dollars)
- Round steak (1 pound): $3.50 ($5.06 in today’s dollars)
- Potatoes (1 pound): $0.49 ($0.71 in today’s dollars)
- Fresh grocery milk (1 gallon): $2.76 ($3.99 in today’s dollars)
(In 2002) The economy did better than expected, with inflation below 1.5% and unemployment averaging at around 5.8%. However, unemployment crept up to 5.8%. Those who were employed were also spending more money on health insurance. Wages and salaries went up only slightly, with the minimum wage remaining at $5.15 per hour.”
https://stacker.com/stories/1227/cost-goods-year-you-were-born
Why a dollar today is worth only 65% of a dollar in 2002
Updated: January 12, 2022
$100 in 2002 is equivalent in purchasing power to about $154.98 today, an increase of $54.98 over 20 years. The dollar had an average inflation rate of 2.21% per year between 2002 and today, producing a cumulative price increase of 54.98%.
This means that today's prices are 1.55 times higher than average prices since 2002, according to the Bureau of Labor Statistics consumer price index. A dollar today only buys 64.52% of what it could buy back then
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The inflation rate in 2002 was 1.58%. The current year-over-year inflation rate (2021 to 2022) is now 7.04%. If this number holds, $100 today will be equivalent in buying power to $107.04 next year. The current inflation rate page gives more detail on the latest inflation rates.
https://www.in2013dollars.com/us/inflation/2002
I think the collusion is obvious. The USD will continue to fall along with all other fiat currencies, and consumer prices will continue to increase.
BTW - My first metal purchases were in 2002 - Au @ $290/oz. and Ag @ $4.63/oz.
b.