By simple compounding, all fiat currencies should become effectively worthless about 85 years into their use through the mechanism of compounding. At the end, the accumulated compound debt behind the money simply overwhelms its value as debt goes nonlinear at the end.So, good old President Roosevelt effectively took us off the gold standard in 1933 - 80 years ago. We've been saddled with a fiat currency ever since.
Before the dirty deed was consummated, an ounce of gold cost you $20. Today, that same ounce of gold will cost you $1,368 (at the time I'm pushing these keys).
Let's do some math: The gold standard cost of gold divided by today's cost of gold will give us the current value/purchasing power of a US dollar.
$20 / $1368 = $0.0146
Yep, your all-mighty dollar is now worth a penny and a half. If you round up. Help you to understand precious metal's ability to maintain purchasing power? Let's say gold crashes to half of its current value. That means your dollar is actually worth three cents. Livin' large!
Using George Ure's calculation about a fiat currency lasting for 85 years, that leaves us 5 years for that final penny and a half to be pissed away.
Don't spend it all in one place...
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