CAD, EUR and CHF vs USD
The US Dollar is not the only currency out there that is losing value; in fact, all the world's governments are depreciating their currencies at alarming rates. Part of this is a desire to maintain competitive pricing with other countries, but most of it is just plain old politics. In order to provide more goodies to the voters, and to support the programs dear to their hearts, politicians have only three choices: take the money by taxation, create the money out of thin air (that is, to steal it through inflation) or borrow the money and pay it back later using one of the first two methods. Since high taxes crush productivity and shrink the economy, and borrowing only works while savers are willing to lend, it all comes back to money creation and inflation sooner or later.
As you can see, there is a "race to the bottom" going on. As policies change, and news reports highlight problems or gains in various countries, one currency can become stronger than another, and fall less or rise more. Later, the currencies may switch places. But over the course of time, the trend for all of them is clear, and it is not good.
Gold is the only currency that retains its value over long time periods. For thousands of years, many money systems have been tried by people all over the world, but only one has stood the test of time, over and over: Gold. There is nothing magical about it – it just works better than any alternative yet tried.
One of the key things that makes gold such a successful currency is that it takes real work to dig it out of the ground, refine it, and transport it to its ultimate users; as opposed to modern government currencies that can be created by typing an amount into a computer and hitting "enter". This keeps the amount of gold in the world growing at a very slow rate, ensuring that gold's value is stable.
Canadian Dollar, Euro, Swiss Franc and US Dollar in Gold grams from 1998 to present:
click on the chart to download a pdf
Currencies in Gold grams from 2006 to present:
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Comments on CAD, EUR and CHF vs USD
Dear Mr. Vollum,
I will hazzard the guess that the Loonie will win. Why? The goal of the North American Union is to comfortably merge the U.S. with Mexico and Canada, to crreate a supergovernment around them. Knocking the dollar offf its pedestal advances that cause. What they need is to do something which will put it closer to the Mexican Peso.
Great blog! I actually love how it's effortless on my eyes and the facts is well written. I am wondering how I may be notified whenever a new post has been made. I have subscribed to your rss feed which should do the trick! Have a nice day!
Such clever work and reporting! Keep up the good work guys
Great site you set up here.
I thought myself original when I made out this one: http://postimage.org/image/2osnlv0w4/
@peter f erickson:
The power still is in peoples money. Stop buying GIC's and bonds and taking money out of your bank and parking it in gold and silver will get their attention.
I guess that is why our dollar is going to be 1.15 usd next year (Well thats what I'm hearing in our mass delusional media)
Silver is a super buy right now and will hold its value while everyone is being robbed. Have I bought silver?
465 troys at an average of 25$ an ounce and at first I was concerned that it was a bad move but now silver is going to 31$ and projections of over 50$ for 2011. This is money that my government will not be able to steal.
I worked hard and long hours for my canadian coupon currency to have pompous know it all gamble it to keep the dollar low to help exports. Its my fn money and I want to keep it.
Is that a crime?
also, aren't most other curencies pegged to the dollar?