Monday, May 19, 2008

Is the Government lying about inflation ?

You have to wonder. The bank of Canada says inflation is around the 2% mark.....but really. Take a look at some of the things you have been buying over the last couple years. Fuel, food , clothing , everything has shot up in price. You can't even find a loaf of bread now for $2.00 ....even the cheap ones at Wal-Mart. Fuel is heading up , and so is everything else.

Our currency is a large part of the problem.

Something that cost $110 in 1880 would have cost $100 in 1919. A decrease.

Something that cost $100 in 1914 would have cost $271.67 in 1964 , a 171.67 % increase in 50 years.

Something that cost $100 in 1964 would cost $690.80 this year, a whopping 590.80 % increase in just 44 years !

Does anyone else see something wrong with this picture ?

They try to keep inflation between 1% -3% per year. I think they are fudging the numbers to try and stay in that target. Inflation is out of control.
People laugh at the gold standard, but the fact is gold and silver will buy pretty much the same amount of goods in 1914 as it would today. In fact , up until 1967 , our quarters and dimes contained 80% silver. A Pre-1967 Canadian Quarter has about a couple dollars worth of silver in it. Todays quarters are 94% steel.....pure junk. I keep all my old quarters and dimes that I come across.....the ones that are worth something, not the junk steel and nickel ones.

I don't care what anyone says, I am keeping a majority of my savings in silver and gold. Over time, they have held their value.

If our system was set up correctly, our dollar would maintain it's value and prices would be stable. When inflation happens, it only benefits large companies. Because prices always go up before wages. Did your paycheque go up 50% when bread went up 50% ? Did your paycheque go up along with gas prices ? No, it didn't .

I think the true inflation number is around the 12% mark right now. And higher in the United States. It's going to be a rough few years...Silver is going to shoot up to $125 , which is where it should be with inflation. Did you know if you took all the silver in the world, it would only fit into a 37'x37'x37' cube ? Now that is rare.