06-23-2016, 07:22 AM
A stable monetary system has deflation.
You can't have a system that always prevents price inflation, especially when certain evil people are bound and determined to cause it. But if a commodity that has intrinsic value is used as money, its value fluctuates both up and down, as the dollar used to do. Now it doesn't fluctuate, it simply gets more and more worthless--and the middle class gets smaller and smaller. Just as your little chart shows.
You love that chart because it proves fluctuations have always happened. But it's still funny, because the whole selling point of the Fed funny money scheme was it would end that fluctuation. It's useful to you, though, because it disguises the fact that the value of the FRN has since finally being decoupled from gold, always gone down, and has never gone up, by showing a nice, straight line as a baseline. In fact, charts that show the value of the dollar, rather than the changes in the value of the dollar, show a slightly bumpy mesa back when it was gold, then a steep hill which is downhill all the way.
And what does it all mean to real people? The death of the middle class.