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Posted Friday, July 29, 2011, at 9:10 AM
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  • I think you made a very insightful analysis.

    I think these examples will help drive your inflation points home.

    1.) Prior to 1913, a man could walk into a tailor and buy a nice suit with either a 1oz gold coin or a $20 note. Today, you can still buy a man's suit with that gold coin but, the $20 note won't do the trick.

    2.) Back in the 70s you could buy a family home for 1000 ounces of gold ($35/oz). Today, you can still buy a very nice home with 1000 oz of gold, but the $35,000???

    -- Posted by hgallatin on Fri, Jul 29, 2011, at 7:46 PM
  • Dear hgallatin,

    Thank you for your great point.

    In 1972 when President Nixon cut the final ties between the dollar and gold, my father bought a 2,200 square foot two story house with full basement on 1/2 acre for about $29,000.00. The gold price was $35.00 per ounce. That home cost less than 1000 oz of gold.

    Today 1000 oz of gold equals 160,000.00. The market value of the home my father bought in 1972 is worth about $145,000.00 today.

    Charles

    -- Posted by Charles Hear on Sat, Jul 30, 2011, at 6:49 PM
  • I actually beg to differ. We don't have a spending problem, we have an income problem. Get people back to work or bring our manufacturing jobs back to the United States and the debt will take care of itself in time

    If people were working or being paid a living wage, we would not need as many government programs.

    I think an employer who has a full time employee who still qualifies for foods stamps should be ashamed.

    I understand that a business needs to make a profit, but the owners do not need to make 10X or a 100X times what their employees make

    It all boils down to Greed

    -- Posted by alwaysopenminded on Mon, Aug 1, 2011, at 8:39 AM
  • Dear Alwaysopenminded,

    If I recall, you are a business owner. I understand your point.

    However, in a free market economy, the person who insists in the profit margins you mention while paying slave wages will likely never truly rosper. Such a business will never likely retain a skilled quality workforce.

    We do have a jobs problem. The question is, why?

    In my opinion, under the best of circumstances, it is difficult for a small business to become successful. As you probably know, about 80 of employees work for small businesses. Rather than making it easier for businesses to start and succeed, the government makes it substantially harder. As a result, business owners have a "hunker down" mentality rather than an expansion and growth mentality

    Nevertheless, spending 1.2 trillion dollars on banks, insurance companies, and mega corporations s not the way to stimulate growth. Not that I recommend it, but if the government instead sent every tax payer 20,000.00 and gave nothing to the banks, etc., what would have been the net effect.

    The federal government is SUPPOSED to be a limited government of limited powers. Most of the federal spending is not consistent with the Constitution. If we were to get back to what was intended, we would most likely have neither a spending or debt problem.

    -- Posted by Charles Hear on Mon, Aug 1, 2011, at 9:27 PM
  • Charles,

    I have been reading your blogs for a few months now. I just wonder where you get your ideas from? I think you are always way off and seem to have no clue of real life, or do you post these to try and get people upset?

    -- Posted by Colts stink on Fri, Aug 5, 2011, at 8:15 AM
  • Dear Colts stink,

    Thank you very much for your comment. I am sure that there are plenty of other people who wonder the same thing. As my personal background and my sources don't make good reading, I generally don't write about it. However, since you seem to have asked your question in earnest, I will give it a serious (potentially boring) answer.

    While I genuinely enjoy having a vigorous debate or a lively discussion, I try to resist being provocative for its own sake. Rather, I prefer to write about provocative issues at the national or international level that are not normally covered by the Brazil Times. I consider my column to be an editorial type piece where I give my comments and opinions on events and issues.

    At the risk of being long winded, I was not born to privilege. My father was an engineer who worked for RCA. My mother was an artist who became an art teacher who taught in the public school system for approximately 35 years.

    My grandfather dropped out of highschool in 10th grade to work so he could pay the rent his father charged him to live at home. He learned to blow glass and put himself through engineering school at night.

    My grandfather was an adult during the Great Depression. During World War Two, he invented the first material to turn light into electricity as part of a top secret weapons development project which helped the England win The Battle of Britain. Because of that invention, my grandfathers wage was raised from $14.00 per week to $34.00 per week and he was awarded a medal for his contributions to the war effort in engineering. He taught me how to follow the stock and commodity markets when I was twelve.

    Virtually every day I read the economic news from several Websites that publish the free on line editions of various news letters and editorials. My favorites are:

    The Mogambo Guru (Richard Daughty - recently retired from writing)

    Franklin Sanders

    Adrian Ash

    Doug Casey

    Chris Webber

    Eric J. Fry

    The Hard Asset Investor

    Money Morning

    The Gold Report

    The Daily Reckoning

    Bill Bonner

    Dan Denning

    Julian Phillips

    Richard Zimmerman

    Reuters London

    Reuters Paris

    (and many more)

    For general news I typically read articles from free on line editions of, or links to:

    The Brazil Times

    The Washington Times

    The Financial Times

    The Associated Press

    The NY Times

    Real Clear Politics

    Breitbart

    CNN.com

    Foxnews.com

    Worldnet Daily

    The Economst

    Newsmax

    (and occasionally others)

    My general world view is as a conservative with libertarian tendencies and a broad sense of humor. While Kansan economic theory (what our President follows) is based on a few kernels of truth, I believe the best way to understand human interaction is from the Austrian school of economics; Hayek, Mises, and Hazlitt.

    -- Posted by Charles Hear on Fri, Aug 5, 2011, at 5:54 PM
  • Charles,

    It's refreshing to know there is another student of Austrian economics in Clay County. I always suspected you were. (Your reading list confirms it) If we could find a third we should form a club. I would add to your list Thomas Sowell and Walter E. Williams to the blogs you follow. You can find them on townhall.com. They are very insightful to today's issues.

    Anyway, keep fighting the good fight and I'll chime in occasionaly if I can add any substance.

    -- Posted by hgallatin on Fri, Aug 5, 2011, at 7:59 PM
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