Washington's Blog has a nice article on comments Ron Paul made about US debt and how printing money reduces purchasing power. Inflation erodes the real value of investments.Here is an example. In 1913 when the Federal Reserve Central Bank was established, gold was valued at $20.67 per ounce. Today, in paper fiat units, gold is valued at around $1,500 per ounce. So if we divide $20.67 by $1,500, we get 0.01378 minus 1 = – 0.9862 X 100 = – 98.6 percent. This calculation shows that since 1913, US fiat money has lost 98.6% of its value since 1913.
This chart in particle caught my eye.
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