Inflation-Adjusted Cost of Gas is the Same as Before
Official retail gasoline prices say that in 1965 a gallon of gas cost $0.31 in the U.S.
Pre-1965 American quarter contains 0.18oz of silver. Today 0.18oz of silver is worth about $3.50, and 31 cents of the same silver-backed coins has 0.217oz of silver. At current spot price it’s about US $3.93 or the the average cost of a gallon of gas in the U.S. right now.
So in terms of silver the cost of a gallon of gas has remained constant. It’s the fiat money numbers that are going up. As more bank failures and additional money injections are expected, I think silver and gold will continue to increase in dollar price. I’m converting a portion of our savings into gold and silver to store value, not to make money.
It makes me so mad to think that I worked all these years and saved – all for nothing. This is my other nightmare, and while all of us should be horrified by inflation, I have personal experience with it which makes it all that more painful to watch. In fact, I along with about 150 million other people had lived through a period of hyperinflation. Really really don’t want to experience anything remotely close to that.
At present rate of inflation in North America (as U.S. CPI index went up 1.1% last month, that’s 13% annualized), your money’s worth will be halved in about 5.5 years.
Inflation is my other financial nightmare as I mentioned and I’ll talk about it more. Theme of the week will be inflation.
Hey, at least you saved. As you’ve probably read, Americans’ savings rates have gone upside down. Don’t know what the situation is in Canada.
Canadians’ saving rate is low, though I don’t think it’s negative.
And apparently Americans who borrowed too much were the smart ones. 1) They’ll be rescued (I’m talking about mortgages) 2) Thanks to the weaker dollar because of it, the whole world will pay via inflation.
Would’ve been smart to borrow a ton of money, live large and then maybe pay back later using cheaper dollars, or even have the government later pay off the debt. Hey, anything is possible.
I’m oversimplifying but can you argue that? Makes my blood boil. My parents are back home and inflation there is 29% in 2007-2008, again, thanks to the dollar.