Inflation calculator

[Mesogen]

Check it out. This is interesting. I don't know how they calculate it, but it gives some pretty interesting answers.

http://www.westegg.com/inflation/

For instance, compare $50k a year job in 2000 with the same job in 2006.


What cost $50000 in 2000 would cost $58543.58 in 2006.

Now let's look at $1 from 1950 to 2000.


What cost $1 in 1950 would cost $6.98 in 2000.:eek: 7X!

Let's look at $1 from 1900 to 1950.


What cost $1 in 1900 would cost $2.86 in 1950.3X!

Now let's look at 1900 to 2000.


What cost $1 in 1900 would cost $19.95 in 2000.:eek: 20x!

So, let's look at 1850 to 1900.


What cost $1 in 1850 would cost $1.00 in 1900.Shocking.

So, to control inflation the Fed was created. It's doing a marvelous job, no?

[fsk]

It's even worse than commonly believed. That source uses the CPI to measure inflation, right? The CPI understates the true inflation rate.

For a more accurate measure of inflation, you can use the rate of growth in M2 or M3, which measures money supply inflation. You can also use the price of gold, although many sources say the price of gold is being manipulated downwards.

[Hook]

Gold is no longer a very good anchor for comparing monetary values. Since no one uses it for money anymore, its value only reflects is usefulness as jewelry and industrial processes, etc. When it was used as money, it was in much higher demand, and therefore worth more relative to dollars. If you divided all the US gold reserves by M3 money, it would come out to something like $30,000/oz of gold. A much higher inflation than the CPI. But since the demand for gold is much lower, it is only at $700/oz.