What Is The Dollar Worth ?

[Emini Maestro]

Quote from Anaconda:

The coins actually have tangible value in their metal composition. The penny & nickel are actually worth more than their face value.

Not at present, but they have been and are likely to have greater metal value in the future, given the trend of the dollar. Pity it is a 2006 federal crime to melt currency or sell currency to a melter for that purpose...

 

[Martinghoul]

Quote from Emini Maestro:

However, CPI is a joke and does not measure real recurring staple costs every household earning less than $50k (that's the majority BTW) pays, every day, week-in and week-out. Food, alcohol, gas, rent, cars, insurance and clothes. The majority doesn't buy middle-class homes or the latest computers.

Hmmmm, if this were in fact the case, it would be a very bad thing indeed. Would you be able to cite sources for this or provide specific details of your calculations/data?

 

[Emini Maestro]

Quote from Martinghoul:

Hmmmm, if this were in fact the case, it would be a very bad thing indeed. Would you be able to cite sources for this or provide specific details of your calculations/data?

It already is the case. So you don't know any family who earns less than $50k? Take a ride down middle America. Is anyone so disconnected they think most families are earning more than $50k per year? That they do not go to Walmart every week to squeeze their budgets?

What, do you have a butler who shops for you? Do you have no memory of prices seven years ago for staples that everyone needs? Or do you doubt that any part of what I described has increased, while the value of the dollar has gone down?

Or are you assuming that the dollar is NOT going down, that inflation has not eaten the dollar, or that the cost of living has NOT far outstripped wages in addition to the value of the dollar?

 

[morganist]

i think what libertad is getting to in part correct me if i am wrong is that the american economy has no assets of any value to other countries or limited or dwindling in comparison. also the domestic economy is not self supporting. creating a situation where the dollar is less valuable due to the lack of demand for the above reasons. concluding that the dollar is over valued is that correct libertad. i apologise if that is a false understanding.

 

[morganist]

Quote from Emini Maestro:

It already is the case. So you don't know any family who earns less than $50k? Take a ride down middle America. Is anyone so disconnected they think most families are earning more than $50k per year? That they do not go to Walmart every week to squeeze their budgets?

What, do you have a butler who shops for you? Do you have no memory of prices seven years ago for staples that everyone needs? Or do you doubt that any part of what I described has increased, while the value of the dollar has gone down?

Or are you assuming that the dollar is NOT going down, that inflation has not eaten the dollar, or that the cost of living has NOT far outstripped wages in addition to the value of the dollar?

he's english so he wouldn't know.

 

[Pekelo]

A very easy comparison for the dollar's purchasing power:

Visit the closest Dollar Store and see if the items are 99 cents or there are quite a few items (like gums) for $1.1....

 

[PlusMinus]

Quote from TraderZones:
Wrong. Inflation is worldwide, and is not particularly related to the Fed or removal of the gold standard . [/B]

The oil shock of the early 70s was a direct result of dollar devaluation. OPEC raised prices to offset the decreased value of payments. Those prices were an example of global inflation that affected all industrious nations.

 

[PlusMinus]

Quote from morganist:

he value of the dollar is in the difficulty in reproducing it. it is finite and seen as a resource as it is a medium of exchange. like gold it has no real value other than people know what it is and it cannot be forged easily. in short it has value as a medium of exchange due to the difficulty of forgery.

The dollar is not finite. Gold is. There is what is above ground and what is below ground. There is no way to print gold.

 

[PlusMinus]

Quote from limitdown:

its worth the net sum of the American people, their aspirations, their hopes, dreams, abilities and creativeness, and oh,

our military....

No. Our military is built using our dollars. Our dollars can not be built using our military for any sustained period of time.

 

[TraderZones]

Quote from PlusMinus:

The oil shock of the early 70s was a direct result of dollar devaluation. OPEC raised prices to offset the decreased value of payments. Those prices were an example of global inflation that affected all industrious nations.

Oil was hit by supply and demand. So is everything else. Some things spike, drop and some lag for years.

But in the long run, inflation is the explanation why the dollar is worth 3% of 1913. But purchasing power has increased, not decreased.