Ounces of Gold to Buy the Dow
Posted by Bill McGonigle Tue, 06 Jan 2009 06:21:00 GMT
This is a great chart that illustrates in a simple manner why the US economy is having such problems:
In terms of the Dollar, decoupled from real assets, we had a market boom in the 2000's. But if you figure out what that Dollar actually buys, in terms of real commodities, not traders on Wall Street, we see that the Dollar has been in decline since 1999, and has lost nearly 75% of its value over that period.
Washington's solution to the problem? Weaken the Dollar further with inflationary spending. The obvious way to buck the trend is to switch holdings from Dollars to the commodities that are 'gaining value'.
good point. thanks