The View From 1776
Friday, September 02, 2011
Inflation Wipes Out The Middle Class
...a gold standard is extraordinarily good at maintaining the buying power of the dollar. From 1948 to 1967 inflation averaged less than 2% per year. Interest rates were low and stable, with the yield on AAA corporate bonds averaging less than 4%. Moreover, if Nixon and his successors had maintained the promise that a dollar was worth 1/35 of an ounce of gold, a barrel of oil today would sell for less than $2.50.