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Old 12-01-2009, 10:08 PM
 
Location: Yucaipa, California
9,881 posts, read 20,474,720 times
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Intresting! Inflation Calculator - Value of a Dollar over Time
http://www.dollartimes.com/calculators/inflation.htm
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Old 12-01-2009, 10:28 PM
 
Location: Planet Eaarth
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Interesting & bookmarked. My 93 suburban cost 25,000 new which means a new suburban cost 37,000 today!!! Yikes!!
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Old 12-01-2009, 10:47 PM
 
2,707 posts, read 5,940,364 times
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Quote:
Originally Posted by eagle7 View Post
Intresting! Inflation Calculator - Value of a Dollar over Time
Inflation Calculator - Value of a Dollar over Time
Oh, how funny. This past week, I watched the old Yours, Mine, and Ours movie (Peter Fonda and Lucille Ball) from 1968. There's a scene where the main characters go grocery shopping for their family of 2 adults and 18 children. The grocery bill is $126 and I made the comment that I wondered how much that would be in today's money. Well...the answer is $781. That's a lot of groceries!
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Old 12-01-2009, 10:48 PM
 
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I don't think that actaully track the vlue of the dollar
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Old 12-02-2009, 12:46 AM
 
Location: Yucaipa, California
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A gallon of gas in 1976 was .50. Today it should be $1.89. Thats about right even though i paid $2.84 today. Taxes are a killer.
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Old 12-02-2009, 06:03 AM
 
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Why does the dollar lose value? It didn't used to. Prior to the Federal Reserve Notes that we use now, the common US Dollars were US Bank Notes, and US Silver and Gold Certificates. This is the lawful money as specified in the Constitution. In 1914 the federal government created the Federal Reserve and gave it the ability to print US dollars in the form of fiat money call Federal Reserve Notes. It is paper issued by a private organization that has the benefit of having legal tender status. At first only the banks used this money as the public prefered to continue to perform commerce with silver and gold backed coins and paper.

In 1933, the Federal Govt. took the opportunity of the despair of the Depression to sieze all the lawful money from the people and replace it with FRNs. They did this by requiring all gold and gold certificates to be turned into the banks and they would be replaced by Federal Reserve dollars at the rate of ~$20/oz of gold. Gold certificates were exchanged at face value. People had 10 days to comply or they risked $10,000 fine and federal jail time. Look at the money in your wallet, it will say Federal Reserve Note and it's because of this action that it does.

Furthermore the banks were ordered to seal all safety deposit boxes and these were then searched by federal agents for any gold not turned in. In some cases the agents replaced the gold with FRN dollars, in other cases people reported losing a fortune and the bank of course denies there was anything in these boxes. Gold was made illegal to own just like illegal drugs are today. (this was rescinded in 1971)

So the dirty deed was done. People were forced onto the Federal Reserve System by the government making the FRN the only currency available. The silver certificates and money lasted for a while, but they moved against it in the 1960s by taking all the silver out of the coins, and then invalidating the remaining Silver certificates in 1968. By 1971, due to these actions and Nixon unhooking the dollar from gold for international trade, the dollar was allowed to freely float and it was not tied to anything. Not industrial production, not available income taxes, not GDP, not Gold, not anything. So what did they do, they fired up the printing presses first at high speed, then warp speed, and now at ludicrous where we are today. Inflation took off.

In 1914 the Federal Reserve dollar was worth well... $1. Today it is worth somewhere between 4 and 2 cents in terms of purchasing power. In the 1950s the dollar was worth enough where a single person earned enough to support an entire family in a comfortable manner. These days it's purchasing power has eroded enough where this isn't even close to a possibility for most families.

If you want another way to look at it, the $20 Gold Coin issued by the US Mint in 1933 before they took the gold was worth $20. Right now you can purchase this same $20 coin from the US Mint for $1539.00

2009 $20 US Gold Coin
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Old 12-02-2009, 06:19 AM
 
Location: Conejo Valley, CA
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The BLS already has this calculator on the web:

Inflation Calculator: Bureau of Labor Statistics
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Old 12-02-2009, 07:10 AM
 
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The Fed Reserve was created in 1913, not 1914. Not that it matters.
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Old 12-02-2009, 08:31 AM
 
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inflation in the 70's - 7.36% annually
inflation in the 80's - 5.1%
inflation in the 90's - 2.93%
inflation in the 00's - 2.5%

I remember reading somewhere that when consumers take on debt, we are creating inflationary pressure now, in exchange for deflationary pressure in the future. In other words maybe we've been overconsuming for a very long time now.
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Old 12-02-2009, 10:29 AM
 
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sample prices from 1900-2009

Historic prices survey, Morris County New Jersey
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