Golden Question - Is the Federal Reserve Note headed for oblivion?
Huxwell
*SCROLL DOWN
*
*
*
*
*
*
*
*
*
*
Relative to the value of gold, the Federal Reserve note has fallen considerably over the past couple of years and the stock market has also declined, as this chart shows. Is gold currently overvalued or is the FRN headed for hyperinflationary oblivion?
In 1914, the original Federal Reserve note was "redeemable in gold" and someone could exchange a $20 note plus change for a 1 ounce gold coin at the local bank. It now takes 50 of these notes to acquire a 1 oz gold coin on the open market; an average inflation rate of over 4% per year, compounded. The stock market rose at an average of about 5.7% per year over the same period, including several sharp "corrections" along the way.
With several major financial institutions verging on bankruptcy and a credit contraction of immense proportions, the conditions seem ripe for another financial wipeout like the Crash of 1929 at any time.
www.modernhistoryproject.org/mhp/ArticleDisplay.php