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Your Money and Your Life–Part 2
In our blog post of March 22, 2013, entitled "Your Money and Your Life," we said that the U.S. Congress, the Department of the Treasury, and the Federal Reserve are pursuing a policy of debasing the U.S. dollar. The continuous debasement of the U.S. dollar propels a long-term upward movement of the dollar price of real assets—that is assets such as precious metals, petroleum, and shares of companies that are called "real" in contradistinction to paper money created by the state. According to the U.S. Consumer Price Index the purchasing power of a dollar in 2013 is the same as six cents ($0.06) in 1933. Over that 80-year period beginning in 1933 deliberate dollar debasement has raised the price of real assets in dollar terms. For example, our prior blog post said that the price of gold is up from $20 an ounce to $1,600 an ounce (as of late March 2013) and the price per barrel of crude oil is up from $1 to $93. Gold is no scarcer in 2013 than in 1933. Between August 2001 and August