Yes, Kerry: 100% on the money (excuse the pun), thank you.
What people forget also is that, with the above in mind, the yardstick for measuring the price of everything i.e. fiat currencies isn't a suitable one, because its value is constantly being debased. The proper yardstick to use is physical gold and/or silver in whichever metric tickles your fancy (g or oz). Only then do you get a real understanding of how much the value of something changes over time: when measured in gold oz, the price of base commodities such as crude oil have remained remarkably steady throughout the decades, whereas certain manufactured goods have steadily become cheaper over time (think computers, cars etc.) - which of course makes sense given the advances in technology, efficiency gains owed thereto, etc.
To sum up: think about value and prices in gold/silver oz, not in USD.
Yes, Kerry: 100% on the money (excuse the pun), thank you.
What people forget also is that, with the above in mind, the yardstick for measuring the price of everything i.e. fiat currencies isn't a suitable one, because its value is constantly being debased. The proper yardstick to use is physical gold and/or silver in whichever metric tickles your fancy (g or oz). Only then do you get a real understanding of how much the value of something changes over time: when measured in gold oz, the price of base commodities such as crude oil have remained remarkably steady throughout the decades, whereas certain manufactured goods have steadily become cheaper over time (think computers, cars etc.) - which of course makes sense given the advances in technology, efficiency gains owed thereto, etc.
To sum up: think about value and prices in gold/silver oz, not in USD.
cantillion effect …. How about we rename it… call it lwhat it is, extortion & theft.