Dollars are buying less, but gold has maintained its purchasing power

"Inflation is defined as the rate at which the general level of prices for goods and services is rising, and, subsequently, the purchasing power is falling," writes Richard Benson, founder of the Speciality Finance Group.

Contrary to official government statistics, Benson sees signs of inflation "every time I make a purchase at the supermarket, restaurant or department store. ... Cereal boxes are only half full; yogurt has shrunk to six ounces from eight; tuna cans are now five ounces from six; candy bars are half their size. ...

"Every time I turn around, it seems like we're getting less but paying more. Believe me, none of this 'less for more' is appearing in the Consumer Price Index. I even heard the other day that postage was going up another two cents for a First Class letter, and Saturday delivery may be eliminated altogether. If you're dealing with the government, there is no such thing as First Class. ...

"On sober reflection, there is no question that the government's price statistics are not for honest measurement but for propaganda purposes. The government actually believes that if they tell us the cost of living is not going up, we'll believe them and won't notice we are actually paying a lot more for a lot less these days."

Benson includes an old Woolworth's menu to illustrate just how shockingly prices have risen - or, alternatively, just how much purchasing power the dollar has lost under Federal Reserve stewardship. "This 1950 menu from F.W. Woolworth is an excellent example of how much cheaper it was to eat out in the 1950s. Just wait and see what it will cost to live when you finally get around to retiring!"

Gold bullion is the time-tested asset you must own to protect your purchasing power over the long haul. To cite an often-used example, under the Roman Empire, an ounce of gold purchased a Roman citizen his toga, a leather belt, and a pair of sandals. Today, one ounce of gold will still buy a man a suit, a leather belt, and a pair of shoes.



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