The Fool (OP)
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February 16, 2013, 07:44:36 AM |
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Is the US dollar really a stable currency? Does it always buy the same amount? Inflation really can't be that bad, can it? Let’s look at the price of a Big Mac in the U.S. for years 2004 – 2012 according The Economist: 2004: $2.90 2005: $3.06 2006: $3.10 2007: $3.22 2008: $3.41 2009: $3.57 2010: $3.73 2011: $4.07 2012: $4.45 Calculate that into percentage increases: 2005: 5.5% 2006: 1.3% 2007: 3.9% 2008: 5.9% 2009: 4.7% 2010: 4.5% 2011: 9.1% 2012: 9.3% How is that for a stable currency? Inflation according to the government is supposed to be only 3% or lower! Bitcoin only performs better in purchasing power at this scale. It may be volatile but it isn't has negatively volatile as the US dollar. References: http://www.economist.com/content/big-mac-indexhttp://inflationdata.com/inflation/inflation_rate/historicalinflation.aspx
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Realpra
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February 16, 2013, 11:45:25 AM |
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Food prices are also going up due to climate change and 7 billion people all wanting to have steaks.
Not saying the dollar is good, but you need to average over a few different types of goods.
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thefiniteidea
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February 16, 2013, 01:12:06 PM |
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GAD DAMNIT! I KNEW I SHOULD HAVE BOUGHT BIG MACS IN 2004
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HowGudAmI
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February 16, 2013, 01:17:23 PM |
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Wow!. You sure had a rise in big mac prices in the US, Im sure the UK hasnt risen by that much at McDonalds... This image may also be of interest: http://img.metro.co.uk/news_focus/Bigmac.png
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coqui33
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February 16, 2013, 01:57:37 PM |
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Wow!. You sure had a rise in big mac prices in the US, Im sure the UK hasnt risen by that much at McDonalds. Yeah, but in the U.S., big macs moo, not whinny,
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HowGudAmI
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February 16, 2013, 03:00:28 PM |
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Wow!. You sure had a rise in big mac prices in the US, Im sure the UK hasnt risen by that much at McDonalds. Yeah, but in the U.S., big macs moo, not whinny, LOL we do love our horse burgers...
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fcmatt
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February 16, 2013, 03:03:11 PM |
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Hasnt mcdonalds been punishing ppl who just buy sandwiches instead of a value meal. Last months the value meal for a big mac has been 5 dollars.
I am also pretty sure the price you quot seems wrong for my area for a big mac. Is that for an expensive state?
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tatsuchan
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February 16, 2013, 10:42:42 PM |
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GAD DAMNIT! I KNEW I SHOULD HAVE BOUGHT BIG MACS IN 2004 Oh, I have! Just check out my stock pile.
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Spaceman_Spiff
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₪``Campaign Manager´´₪
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February 17, 2013, 02:50:33 AM |
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I think the title of your post is misleading/rubbish. 'Volatility', as far as you can determine it by year over year changes has been much lower for big mac than for bitcoin.
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thefiniteidea
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February 17, 2013, 05:25:47 AM |
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GAD DAMNIT! I KNEW I SHOULD HAVE BOUGHT BIG MACS IN 2004 Oh, I have! Just check out my stock pile. smarter man than I...
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sublime5447
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February 17, 2013, 07:36:55 PM |
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I think the title of your post is misleading/rubbish. 'Volatility', as far as you can determine it by year over year changes has been much lower for big mac than for bitcoin.
+1 compare apples to apples. Find anything that moves like that over hours not years and you might be on to something.
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Monster Tent
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February 23, 2013, 11:07:19 AM |
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Thats nothing. Electricity prices here went up 40% last year.
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Doctor Mushies
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February 27, 2013, 11:01:00 PM |
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The value of a deflationary currency is always going to be attractive
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veteranBtc
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March 02, 2013, 02:37:10 PM |
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Think at the good part, you can buy more bigmacs with 1 btc
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wachtwoord
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March 02, 2013, 06:46:13 PM |
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Is the US dollar really a stable currency?
Yes. Stable in reducing in value.
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thefiniteidea
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March 02, 2013, 07:35:05 PM |
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Is the US dollar really a stable currency?
Yes. Stable in reducing in value.
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notme
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March 02, 2013, 10:57:39 PM |
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You silly city-dwellers are getting fucked as usual. Big macs are still only about $3.50 here. Still, it's quite a jump from what it used to be.
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veteranBtc
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March 03, 2013, 09:43:30 AM |
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You silly city-dwellers are getting fucked as usual. Big macs are still only about $3.50 here. Still, it's quite a jump from what it used to be.
Then, 1 btc = pack of 10 big macs
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Snowfire
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March 03, 2013, 04:36:00 PM |
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This is all quite amusing. But a Big Mac is hardly an ideal economic benchmark--prices of things that go into it as well as of the energy consumed in making it have been rising in absolute (not just monetary) terms, and demand has been increasing of late. There is no ideal benchmark (and gold is not even one of the better ones, despite what its proponents say). Some of the better benchmarks are those with very stable supply and demand, not subject to speculative bubbles or industrial cycles, such as
Salt (as mined, not purified versions.)
Argon and xenon
Heavy water (deuterium oxide); deuterium gas might also be a good proxy.
Perhaps someone can concoct a basket of such benchmark commodities some day. I would like to see currencies measured against it.
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BTC:1Ca1YU6rCqCHniNj6BvypHbaHYp32t2ubp XRP: rpVbjBotUFCoi9xPu3BqYXZhTLpgZbQpoZ LTC:LRNTGhyymtNQ7uWeMQXdoEfP5Mryx2c62i :FC: 6qzaJCrowtyepN5LgdpQaTy94JuxmKmdF7
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Seth Otterstad
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March 05, 2013, 03:33:31 PM |
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Food prices are based on oil prices, and everyone knows oil is very volatile. In the US, only 12% of the cost of a loaf of bread is the wheat, while in the developing world, this can be 70%. In the US, the main cost of food is the cost of distribution, not the cost of the food commodities. And the main cost in food distribution is the cost of oil for transportation. So looking at the price of oil tells us a lot about the price of food.
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