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Originally Posted by Thymeclock
Once the government starts printing more money and there is loss of confidence in the fiat currency, gold prices "go up" (but only relative to what the paper fiat currency is worth) because that paper buys less and less of everything, including gold.
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Nope, look at the numbers for the spike in the early '80s. Inflation may have set off the bubble, but it fed on itself and greatly outpaced inflation. Then it crashed, without any corresponding deflation in the dollar.
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Surely you must be joking! In just the past few year food prices have doubled or tripled.
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Stopped by the store tonight & bought a few things, so I have the receipt right in front of me.
Cheerios: $2.98/box, a bit under 17 cents/oz, about what it's been (except on sale) for years.
Strawberries: $1.88/basket, typical for this time of year.
Coffee: 2 lbs @ $6.98. This has gone up a bit, used to be around $5.xx.
Pedegree dog food: $1.08/can, been in the just over $1 for as long as I can remember.
Ground chuck: $3.58/lb, doesn't seem like any major increase, but I'm not sure as I usually just look at the package price.
Whole wheat flour: $0.50/lb, no noticable change
Long grain brown rice, $0.56/lb. This has gone up a bit, used to be about $0.45/lb.
Carrots: $2.29/5 lb bag, same as usual. Apples 0.78/lb likewise...
So I can see maybe 20% average price increase over the last year or so, but doubling or tripling? No way! As I said before, if you're seeing that, I suggest shopping somewhere else.
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My house is supposedly worth four times what I paid for it 25 years ago. However it is the same house. The increase in the current price of it is due to an increase in price, not an increase in value. The difference in the estimated value is all the result of inflation.
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Now you're just being silly. Or did you sleep through the housing bubble? Almost entirely demand-driven. A thing's worth what someone will pay for it, and with easy credit and an expectation of ever-rising prices, demand was pretty high.