>when the real money – gold and silver – are used as an indicator.
The basis of your argument is wrong. An individual commodity like gold can't be used as indicator of economic levels. It is just as affected by supply and demand as any other commodity.
This is similar to when people try to compare the price of gas at the pump to the economy as a whole ("back when I was kid, gas was 10 cents a gallon, and now it's $3.50! Why aren't wages 35 times higher!").
Gold isn't commodity - why the central banks of the world are storing it? And not oil. And not steel. And not coal? Because gold still functions as _money_ in people's minds. This includes central bankers. And gold historically, for the past 5,000 years, has been used as an indicator of economic levels. One of the good reasons is that you can't have a Government play with it. Did you know that if the same formula for accounting for inflation was used today as was used in Reagan years the US official inflation would be at 10% ? That's right, if we just used the official Government formula of counting inflation from 1980s we are at 10% today. While they try to push this propaganda it is non-existent.
I love your quote: "back when I was kid, gas was 10 cents a gallon, and now it's $3.50! Why aren't wages 35 times higher!"
I think mine is better: "back when I was kid, gas was 10 silver cents a gallon, and now it's still 10 silver cents! Why wages are 3 times lower in silver terms!"
Because if you google it, you'll know that barrel of oil price in real money has been the same for the past 50 years. About 1/15 price of ounce of gold. I.e. 1 ounce of gold buys you 15 barrels of oil. With +/- 5 barrels deviation depending on the market cycle. But the average is 15. Your quote presents exactly why gold is much better indication of inflation than some government burocrats and their ever-changing formulas to please the Government.
The basis of your argument is wrong. An individual commodity like gold can't be used as indicator of economic levels. It is just as affected by supply and demand as any other commodity.
This is similar to when people try to compare the price of gas at the pump to the economy as a whole ("back when I was kid, gas was 10 cents a gallon, and now it's $3.50! Why aren't wages 35 times higher!").