Faith Revolution

You Are Being Robbed!

If you click on the image to the left, you will get a larger version…I think.

Prior to 1971, prices in our country were pretty stable.  Inflation wasn’t much of an issue.  In 1974, my grandmother bought a brand new Dodge Dart Custom for about $3500.  That same car today would be about

$25-30,000.  What has happened in the past 35 years?  Inflation.  Why after 1971?  Our government decided to get rid of the gold standard.  The value of our dollar was no longer tied to gold.  What is it tied to now?  Nothing.  The chart above shows the value of the dollar vs. gold and oil since 1990.  The green line is the dollar.  The yellow line is gold.  The black line is crude oil.  Do you notice anything?  As the dollar loses value, oil and gold increase.  Why?  When there is uncertainty in the US economy, investors want to put their wealth into a real commodity, not anything attached to US currency such as bonds and stocks because there is nothing real behind it.  Gold is real.  Oil is real.  They have real value.  Money is just paper, since its value is not attached to anything.

Do you notice anything else, especially as pertaining to $4 per gallon gas.  Look again!  The price of gold and oil pretty much track together.  So if our dollar was still attached to gold, do you know what would be happening?  That’s right…price stability! 

One more thing to notice…The dollar that you trade your labor for when you go to work every day is becomming worth less and less while the things you buy, in this case oil, is becomming worth more and more.  So where is the wealth going?  If you were working for a dollar that was backed by gold, then you would be increasing your wealth with your labor, but you are trading your labor for something that is becoming worth less!  Does that make sense to you?  Inflation through fiat money (look it up) is the hidden tax that is robbing you of your wealth.

It’s not “big oil”

It’s not OPEC

It’s your government…your representitive.

You are being robbed.

July 16, 2008 Posted by Clifford Cartwright | General | | 3 Comments