It’s a question rather than a comment because I haven’t quite got my head round it, but what would the charts look like if they were inflation adjusted.
We all know fiat currencies are routinely devalued to reduce the real value of sovereign debt which is the only way any of the major currencies have any hope of paying down the existing massive debt burden they have
That’s the bit I’m struggling to get my head round is the purchasing power of either. You may well be right I suspect but it’s just that an inflation adjusted chart might provide (me, at least) with a perspective. Probably an hour on Google if the weather wasn’t quite 😀
Drew, after a day of pleasantly mindless activity, I think i got to where I think I was thinking. It would be more useful if S&P/ Gold ratio was overlaid with the RPI. The relative benefit of various investments is not particularly helpful if neither can keep up with inflation. It’s beyond my tech skills but hopefully there’s someone out there that can do it. The Flying Frisby is all about investing but investing the relative of any investment is only relevant in relation to its ability to maintain purchasing power.
Yes, I think the point is partly to measure stocks in sound money - ie not debased or inflated - so it is inherent. But Bloomberg somewhere I think do inflation adjusted index charts too.
Hi Colin, in answer to your question which I can no longer seem to find, Charlie is a good mate whose opinions I have a lot of time for. I actually did that video for his channel but as a favour I offered to put it on mine which has a bigger audience.
It’s a question rather than a comment because I haven’t quite got my head round it, but what would the charts look like if they were inflation adjusted.
We all know fiat currencies are routinely devalued to reduce the real value of sovereign debt which is the only way any of the major currencies have any hope of paying down the existing massive debt burden they have
Good to know you’re coming up to God’s country 👍
Isn’t the Dow/gold chart already fiat inflation adjusted by default? It’s how much real thing does it cost to buy fiat thing.
Just returned from the highlands. God’s country indeed. Not so sure about Edinburgh tho (nor any other big city) 🤪
Hi Drew, with you all the way on big cities.
That’s the bit I’m struggling to get my head round is the purchasing power of either. You may well be right I suspect but it’s just that an inflation adjusted chart might provide (me, at least) with a perspective. Probably an hour on Google if the weather wasn’t quite 😀
Drew, after a day of pleasantly mindless activity, I think i got to where I think I was thinking. It would be more useful if S&P/ Gold ratio was overlaid with the RPI. The relative benefit of various investments is not particularly helpful if neither can keep up with inflation. It’s beyond my tech skills but hopefully there’s someone out there that can do it. The Flying Frisby is all about investing but investing the relative of any investment is only relevant in relation to its ability to maintain purchasing power.
Have a great weekend. Colin
Yes, I think the point is partly to measure stocks in sound money - ie not debased or inflated - so it is inherent. But Bloomberg somewhere I think do inflation adjusted index charts too.
Hi Colin, in answer to your question which I can no longer seem to find, Charlie is a good mate whose opinions I have a lot of time for. I actually did that video for his channel but as a favour I offered to put it on mine which has a bigger audience.
I wonder what gold is like vs the FTSE. I'm increasingly thinking, from a UK perspective,
gold is almost like an exposure to $, except with it's own potential upside.
BTW car guys say FIAT stands for "Fails Immediately, All the Time". Bar the "Immediately " , could this be used for currencies as well? 🤣