Wednesday, November 10, 2010

Gold is very valuable and immensely powerful

More on gold. And inflation. This article by David Leonhardt ridicules the media and others who continually talk about new record high prices in commodities such as oil or gold: They aren't adjusting for inflation! Inflation means that it costs more pounds or dollars to get the same thing at a later point in time, as you probably are well aware of. So that means that prices generally rise, and hence new record highs can be quite common.

It's a nice little explanation of this. The article then talks about the wider agenda of people touting the price of gold and is quite complicated. The first bit about adjusting for inflation though is somewhat amusing...

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