1913 prices the year the founded the FED

[HistoryStudent]

1913 prices:

Average Income $1,296.00
Loaf of Bread $.06
Gallon of Gas $.12
Gallon of milk $.36
New Car $490.00
New House $3,395.00
Dow Jones Index 78


My question is have they failed as money managers?

The money supply is up 100 times - a penny then is a dollar now - or a dollar then is one-hundred today.

[HistoryStudent]

Originally Posted by HistoryStudent

1913 prices:

Average Income $1,296.00
Loaf of Bread $.06
Gallon of Gas $.12
Gallon of milk $.36
New Car $490.00
New House $3,395.00
Dow Jones Index 78


My question is have they failed as money managers?

The money supply is up 100 times - a penny then is a dollar now - or a dollar then is one-hundred today.

Gold was $20 for a double-Eagle then so:

170 - $20 Double Eagles would buy you a brand NEW home;

or

25 - $20 Double Eagles would buy you a brand NEW car.

This will happen again - gold returns to its true wealth sure a shootin'


Gold returns to what it should be:
So for less than 200 current Gold-Eagles someday SOON you'll be able to buy a new home and car for cash. It sure is worth the probability - is it not?

200 Gold-Eagles would cost you $85,000 right now - heck of a bargain.

BAR- GAIN

[IrishGold]

Originally Posted by HistoryStudent

1913 prices:

Average Income $1,296.00
Loaf of Bread $.06
Gallon of Gas $.12
Gallon of milk $.36
New Car $490.00
New House $3,395.00
Dow Jones Index 78


My question is have they failed as money managers?

The money supply is up 100 times - a penny then is a dollar now - or a dollar then is one-hundred today.

Well let's look at that!

Average Income $129,600.00 ---- I don't think so
Loaf of Bread $6.00 ----- Not even Deli bread is this much is it?
Gallon of Gas $12.00 ----- Thankfully no!
Gallon of milk $36.00 -----Not even close
New Car $49,000.00 -------Sure, if you get all the dodads
New House $339,500.00 ------Mine is worth that
Dow Jones Index 7800 ------ Almost half again as much.

[Bobcat]

Originally Posted by HistoryStudent

Gold was $20 for a double-Eagle then so:

170 - $20 Double Eagles would buy you a brand NEW home;

or

25 - $20 Double Eagles would buy you a brand NEW car.

This will happen again - gold returns to its true wealth sure a shootin'


Gold returns to what it should be:
So for less than 200 current Gold-Eagles someday SOON you'll be able to buy a new home and car for cash. It sure is worth the probability - is it not?

200 Gold-Eagles would cost you $85,000 right now - heck of a bargain.

BAR- GAIN

I remember me Dad telling about my Great Uncle going down to the Ford dealer and buying a brand new car for $600., in dimes. He was a farmer and this was his egg money. He gave my Dad his old model T and my Dad drove that old T until he went off to WW2, he sold the T for $25. before he shipped off and thought he did good on it. We use to think it was funny picturing Uncle Will going in there with a bag of dimes to buy a car. It makes a lot more sense to me now, he was buying with silver.

[HistoryStudent]

Originally Posted by Bobcat

I remember me Dad telling about my Great Uncle going down to the Ford dealer and buying a brand new car for $600., in dimes. He was a farmer and this was his egg money. He gave my Dad his old model T and my Dad drove that old T until he went off to WW2, he sold the T for $25. before he shipped off and thought he did good on it. We use to think it was funny picturing Uncle Will going in there with a bag of dimes to buy a car. It makes a lot more sense to me now, he was buying with silver.

I have my grandfathers NY State tax papers from 1920. He made $2,800 for the year as a public accountant/auditor and paid no state tax. That was the exemption then $2,800 with a wife and one kid. His mom's home was mortgaged for $2,800 in 1929 and she lost it. That's what "killed" the people in 1929-1939 was their debt service. They had borrowed BIG money for the first time buying cars, radios, and homes with low down payments.

As history rhymes and people lose their jobs (now a real 9.7 unemployed rate, by the way) they will not be able to cover their adjustable rate mortgages (currently 64% of the home owning population.) My post about the prices really matters most about big things cars, homes, and the DOW. Those things wipe out people - a loaf of bread, a gallon of gas, milk, and other food things can be substituted - your abode, wheels, and investments can NOT. They will be long gone if the credit wipeout hits - and it will. Sure as shootin' they are changing the center of power from North America back to Europe and Asia once again.

[FoundingFathers]

THE MOST IMPORTANT DIFFERENCE IMO - is the tax rate.

In 1913 the highest Federal Income tax rates where between 1 - 3%. The 3%
was for the "robber barrons". Quite a difference between keeping half of your income vs. 95%.

In 1912 the only contact most Americans had with the Federal Govt was the Post Office.

[HistoryStudent]

Hey folks day dreaming here:

Imagine going to a foreclosed home next year. A beautiful one level on the golf course not far from the country club pool. It has everything you ever wanted plus a four-car garage with a free restored Model T in the deal. The asking price has fallen a bit to only $150,000 from $500,000 in November of 2003. You look it over and plce your bid.

You bid 50 golden eagles for it on paper at legal tender price on the coin of only $50 - each one is worth around $3,000.00 then in 2004. Dog gone it, you get lucky and the bank needs the gold. You ask for free and clear title demanding they keep to the legal tender price of $2,500 for your 50 one-ounce Golden Eagles. That cuts down on your tax basis. Poof! I wake up. Darn it!