How Much is Your $100 Worth

I don't get it. :ohwell:

They're comparing cost of living from different states. You know, like how in some areas rent for a typical apartment is much more than it is in other areas - or gas is more expensive or any number of other things cost more or less depending on where you are.

Of course, typically, the average income is also higher where the average costs of things are higher. So a more useful comparison might be - How much is your 10 hours worth? Or something like that - meaning, how much does stuff cost relative to how much people earn on average from a given amount of productivity.

But if you work most of your life in, say, Maryland (where you'd expect to earn on average more than you would in, say, North Carolina) and then when you retire take your savings and move to North Carolina, you can get more bang for your buck, so to speak, on your lifetime's worth of work.
 
They're comparing cost of living from different states. You know, like how in some areas rent for a typical apartment is much more than it is in other areas - or gas is more expensive or any number of other things cost more or less depending on where you are.

Of course, typically, the average income is also higher where the average costs of things are higher. So a more useful comparison might be - How much is your 10 hours worth? Or something like that - meaning, how much does stuff cost relative to how much people earn on average from a given amount of productivity.

But if you work most of your life in, say, Maryland (where you'd expect to earn on average more than you would in, say, North Carolina) and then when you retire take your savings and move to North Carolina, you can get more bang for your buck, so to speak, on your lifetime's worth of work.

I get it now. :jet:
 

FollowTheMoney

New Member
My five $20 double eagle gold coins, with a total face value of $100, are worth $6168 federal reserve notes based on today's spot price. And will still purchase the same amount of goods and/or services as they did back in 1927.
 

b23hqb

Well-Known Member
PREMO Member
My five $20 double eagle gold coins, with a total face value of $100, are worth $6168 federal reserve notes based on today's spot price. And will still purchase the same amount of goods and/or services as they did back in 1927.

So, you might as well cash them in today while the dollar is worth what it is now, instead of when another trillion is piled onto the national debt before the 2016 election. Those are beautiful coins, and good luck trying to find somebody willing to pay spot price iffn' you did try and sell.
 

FollowTheMoney

New Member
So, you might as well cash them in today while the dollar is worth what it is now, instead of when another trillion is piled onto the national debt before the 2016 election. Those are beautiful coins, and good luck trying to find somebody willing to pay spot price iffn' you did try and sell.
Pile it on. Just means that by then, with more and more inflation, (expansion of the money supply) I could exchange them for more FRN's.
Remember though, it's not the value of gold going up, it is the value of the dollar going down.
 

tommyjo

New Member
Pile it on. Just means that by then, with more and more inflation, (expansion of the money supply) I could exchange them for more FRN's.
Remember though, it's not the value of gold going up, it is the value of the dollar going down.

Sorry that is not how inflation works. Expansion of the money supply does not equate to inflation. You obviously have not been paying attention for the past 7 years.

Nor is your gold price based on the value of the dollar going down. Gold is a fear based trade...it has little to do with inflation, unless inflation is rampant (ie. FEAR). Your gold today is not worth what it was in 1980 when using inflation adjusted dollars. But gold bugs never understand this most basic point.
 
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