Quote from: HappyFunnyFoo on June 26, 2011, 04:18:57 PM

For fun's sake, let's compare dollars to gold

$1.00 in 1800 held in a bank as a CD with, let's say 2.5% continuously compounded interest, would be worth about $178 today.
$1.00's worth of gold in 1800 would be worth $72.66 today. (Sources: "Gold Standard" of $20.67/oz and $1502/oz spot price today)

Clueless OP, what was your point again?

I'm curious what the point of your reply was - did I mention gold in my OP? I'm also curious how that bank of yours survived the Great Depression, and the recent financial crisis. Ahh, that's right, the nation has repeatedly gone deep into debt to prop up failing financial institutions, now to the point where we cannot possibly pay it back. So we have racked up a massive debt to maintain that 2.5% return, with the added bonus of pushing gold's value below historic levels. Why do you pretend that the price of gold, banking solvency, and the value of the dollar are all determined in their own separate little vacuums?