The gold price
Spit In The Right Direction - 3 June 2011
Price too high? Or Dollar too low...?
A PRICE is a function of two things, writes Brian Hunt for Steve Sjuggerud's Daily Wealth.
On one hand, you have the asset being measured. On the other hand, you have the "measuring unit," like Dollars, Euros, or gold.
So when a political agitator complains "Gasoline is too damn high" we say go ahead and agitate... spit on government policy... but spit in the right direction.
Agitate against the Federal Reserve and the whole rotten idea that we can borrow, spend, and print our way to prosperity...
The trouble with "one-sided" price monitoring and statements like "gas is too damn high" is that they fail to account for the fact that the US Dollar has plummeted in value in recent years. It's more of a laughingstock than a solid measuring unit.
As the chart shows, when we price gasoline in "real money" (gold), we see gas is actually lower than it was five years ago. Gas too damn high? Try Dollar too damn low!
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