America in Decline
I screwed up the last blog by mentioning INVESTING. Of course everyone jumped on dividends. This blog is NOT about INVESTING, it is about comparing the VALUE of the DJIA in 1929 to the value today.
FACT - at the DJIA peak in 1929 the value of the entire index was worth a little over 18 oz of gold.
FACT - today, the DJIA is worth a little over 9 oz of gold.
FACT - the power and wealth of America is eroding.
Some people will argue the time periods used - saying 1929 was the PEAK at 381. Fine - even if you use the PEAK of the DOW at 14,000, the FACT is the DJIA was worth a little over 14 oz of gold (about 25% less).
This is NOT a blog about putting your money into gold - gold is only the STORE of wealth. It is a way of keeping your money from eroding due to inflation.
Therefore, over the past 80 years, the sum total of the 30 DJIA corporations, is worth LESS than it was 80 years ago. The Federal Reserve system of inflationary increases in the money supply distort the value of the stock market averages and make many believe the value of assets are increasing, when they may not be at all.
Hope this clarifies things for everyone.