And you know something else these " Oh its only a tiny bit of inflation" folks don't get?
Only 10 years ago a Gallon of milk Averaged $2 and a loaf of bread was 99 cents, but we are supposed to believe that there is only 2.7% inflation per year for the last decade. Well if that were true a gallon of milk would cost $2.61 and bread would cost $1.29 today. Were looking at 13-14% average for the last 10 years on Necessary goods, food is not optional. Gasoline in 2001 was $1.65, today its $3.90 which averaged out is almost 9% annual inflation over a decade. How about electricity? 2001 it was as low as $34 per MWh, it is now near $120/Mwh.Thats a 13% Average inflation rate. Gold? Gold was $260 an ounce in 2001, it is $1542 today, a 19.5% average increase. Silver? $4.50 in 2001, $36 today, 23% growth over the last decade. Nothing here says inflation is at 2.7% interest to me.
First off, you don't even seem to understand that inflation does not dictate the price of an item. Supply and demand takes care of that part. Inflation depicts the value of your money compared to before. The value of your money is determined by how much money is floating around in the world (also a supply and demand story). The less money around, the more valuable (unless of course there is so little money that nobody has it so then nobody will generally want it).
Secondly, I pulled the price of a loaf of bread of some site that posted national averages. I have found now that according to
http://www.bls.gov/ro3/apmw.htm I was actually shooting high:
Bread, white, pan, per lb. (453.6 gm)
1.359 1.420 1.472
I do believe that for the past two years I have been able to get a generic brand of bread from grocery stores (and walmart) for just around $1.
The rise in gold and silver is not primarily an indication of devalued currency, especially not at that rate of increase. It is merely an increase in demand that can only suggest such a sharp increase in value. See, people have lost faith in the dollar (just like you) due to the economic collapse. Therefore, they have a sharp desire to invest in precious metals (which they believe will not lose value like the dollar has). This increase in people wanting to buy (demand) is being met by the same quantity of gold available (supply). More demand + same supply = rising value. Take into account that people have been buying up gold and silver like crazy you get this: More continued demand + less supply = skyrocketing value
Ironically, I bet these same people who are doing this are the ones commenting on the greed of stock market investors. Yet, they fail to realize this is the same thing. The ones who "got in early" on the metals are going to hold onto it until they see it start to lose value. Then they'll dump it and cause sharp decreases in metal value.