will the value of a dollar ever quit inflating?

[The motor guy]

Right now you can go to the gas station and buy a 20oz coke for about $2.00. Back in the 30s and 40s I bet you could get one for a quarter, probably less I didn't look it up, but my point is 100 years from now are people going to be paying 6 dollars for a coke? I know we have periodic recessions like back in 2008, but I don't think that really lowered prices on much of anything.

Thoughts?

 

[zzyzzx]

No. Duh.

 

[horse123]

https://www.youtube.com/watch?v=UwKZVPYssOg

good short watch.

Basically there's no way to stop inflation in a reasonable way, you can only slow it down.

 

[John_K]

Actually, isn't it deflating?

I remember buying magazines for a quarter as a kid. Nowdays? Five bucks or more, I can't believe it.

I can remember a pop machine being 15 cents in the early 70s.

Yes I believe inflation is endless.

 

[The motor guy]

Originally Posted By: zzyzzx
No. Duh.


I thought that's why we have depressions and recessions, it causes the prices of certain things to drop?

 

[horse123]

Originally Posted By: John_K
Actually, isn't it deflating?

I remember buying magazines for a quarter as a kid. Nowdays? Five bucks or more, I can't believe it.

I can remember a pop machine being 15 cents in the early 70s.

Yes I believe inflation is endless.


I'm not even old and I remember maybe 10-15 years ago a ton of things in grocery stores and convenience stores could be had for a dollar or less.

Now a bag of chips is $4.99 and a 2 liter bottle of coke is 2.50.. I distinctly remember 89 cents being a normal price not that long ago, not even on sale.

 

[AirgunSavant]

Some things are cheaper now.
In the 70's a 64 oz. soda cost far more then, than it does now.
TV's size for size are cheaper and so on.

 

[RedOakRanch]

Everything is cheaper now compared to income. That's how we can all afford Starbucks and cell phones, its the truth. Food, electronics and even oil is cheaper than ever vs income. Inflation is necessary for capitalism/investments I believe.

 

[alcyon]

Inflation is a consequence of the monetary system. No escape from it as long we keep the Fractional Reserve System.

 

[Bandito440]

Healthy inflation is seen as 2%.

https://www.federalreserve.gov/faqs/economy_14400.htm

 

[BrocLuno]

All the central bankers and gov't finance ministers want a minimum of 2% inflation.

That lowers the cost of gov't debt over time.

It also prods folks to be spenders (it'll cost more tomorrow...).

It's social engineering via the cost of currency.

Do i like it, no. Do I have any control, no. Can I compensate, maybe ...

 

[double vanos]

Better than deflation....

 

[Bandito440]

The Illuminati want you to have inflating cash. The only way to fight them is to buy gold and bury it in the yard.

What ever happened to antiqueshell/givemeavowel anyhow? He must have a new login by now.

 

[Oldtom]

I see inflation ending in only one way, hyperinflation. Hyperinflation has happened many times throughout history. It is a way for broke, financially illiterate governments to stiff their creditors. No point in worrying about it since you cannot control it, just try to survive if it happens. My grandfather had $5000 in a bank in 1929 and lost it all, along with his business. He survived. I am the proof

 

[pcoxe]

It's all an illusion. You think you make 10x more money, but it's only worth 1/10th of what it used to be. Value-wise, things kinda stay the same. An ounce of gold still buys what an ounce of gold did 50 years ago.

 

[Pop_Rivit]

Originally Posted By: motor_oil_madman
Thoughts?


Yes. Simple economics is apparently no longer taught in high school. Economics, and understanding how the monetary system works, should be part of everyone's education.

Originally Posted By: Bandito440
The Illuminati


People seriously believe that tripe?

 

[Bandito440]

Originally Posted By: pcoxe
It's all an illusion. You think you make 10x more money, but it's only worth 1/10th of what it used to be. Value-wise, things kinda stay the same. An ounce of gold still buys what an ounce of gold did 50 years ago.

The value of gold fluctuates just like other commodities, but it's increased quite a bit since then. Still, it pays no interest or dividends, so it's a historically [censored] investment over the long term.

One ounce of gold in 1966: $35.13
One ounce of gold in 2016: $1,368.00
Total return: 3794%

S&P 500 1966: $93.32
S&P 500 2016: $2,164.25
Total return with reinvested dividends: 10677%

So, $100 saved for the past 50 years:
Gold: $3,794
S&P: $10,677
USD inflated value: $744

 

[aquariuscsm]

Anyone remember those individual pieces of bubblegum being 1 cent at 7-Elevens (late 70s?). How much are they now,probably a quarter or something?

 

[djb]

People picked gold to bury / compare.

Gold has done well. But 50 years ago you might have picked silver. Silver has far more industrial uses, and looked like a safer choice. (After all, people will always need photographic film, right?)

Silver in 1966 was $1.30 per ounce, going up to 1.56 by the end of the year. This year silver is $15-$20 an ounce.

Back to $6 sodas.. yes, that's pretty much what they cost at the local football stadium. A local chain coffee place has a line out the door for their $3.50 (smallest) and up cups.

 

[Vikas]

I paid more than four figure for my first computer. I can not even give it away free now.