Saturday, December 4, 2010

Interesting Statistics

On August 15th 1971,President Richard Nixon closed the "gold window" which allowed foriegn holders of United States dollars to redeem their holdings for physical gold. If you look at any money supply chart from 1970 to the present the line is parabolic. I hate to be an alarmist because life will always moves forward one day at a time. I have to wonder if the United States dollar is a good store of value? The international investment community has been questioning the United States dollar as the world's reserve currency and they are taking action by moving out of this fiat currency.

Now to the interesting statistics. In the mid 1970's the top 1% of the population made 8% of the national income. In the mid 1980's the top 1% of the population made 15% of the national income. In the mid 1990's the top 1% of the population made 19% of the national income. In the mid 2000's the top 1% of the population made 23.5% of the national income which is more than the bottom 50%. If that statistic isn't alarming enough, the top one tenth of 1% earns 12 cents of every dollar earned. The United States of America was a great country when the wealth was distributed broadly and big corporations made their products domestically not in China. I hope this trend is reversed. The country needs tariffs on imports, plus balanced budgets, plus a dollar back by gold and other real commodities, plus taxes need to be kept low, this will equal a better standard of living for the masses.

Has the case been made to buy gold? The case for gold is made if you don't think the future will have the 3 P's. The experts say you shouldn't own gold during times of peace, prosperity, and price stability, you decide what you see today and in the future?

2 comments:

Cousin Leon said...

Here's an interesting statistic for you -- you earn 4.5 cents for every dollar that Cousin Leon makes. Cousin Leon can bring it in so many ways.

Anonymous said...

I earn 4.5 dollars for every dollar that Leon lies and steals by massaging the truth to make it more true. get to work Leon.