The TreeceCo Report
By David Treece
Recently, I sold my Jeep. I owned it for over ten years and it had nearly 150,000 miles on it. What's interesting is that I sold it for half of what I paid for it. At face value this seems like I made out well, but let's look at it a little deeper.
Yesterday I read an article that explained that things do not change value. Our dollars change in value. A gallon of gas is a gallon of gas, a cup of coffee is a cup a of coffee, and an ounce of silver is an ounce of silver. These products have not increased in value over the years; rather, what our dollars can buy has decreased. This gives the illusion that products increase in value.
Currently we are seeing the price of silver being crushed and manipulated, but it really does not matter. Why? Because it is being crushed in terms of dollars, while an ounce of silver is the same ounce it was a thousand years ago. It's always had value. The only thing that gives the dollars in your bank account value is the faith you put in them. A dollar is a worthless piece of paper that inherently has no value.
When we hear the government or the news telling us that inflation is low, we should question this because clearly it is not. Factors like food cost and fuel cost are not even factored into the inflation metrics.
Since 2008 America has created trillions of new dollars and banks are highly leveraged by fractional reserve banking. Fractional reserve banking means banks are allowed to loan out nine times what they actually have in reserve. The creation of new dollars will result in drastically changing what we can afford to buy.
In reality I did not achieve that great of a gain in selling my Jeep for half of its original cost because I had to in turn buy a new vehicle that was much more expensive than my Jeep was when I bought it. So my gain of getting half of my value was nullified by having to spend more on my new car than I would have if all things were equal.
The article I read asked the question, "Will a dollar be worth more next year, in 10 years or 50 years?" We all realize that inflation is part of our system
An ounce of gold or silver is a promise. It is a lot like a contract. It inherently has value, but the dollars we hold have no contract and our government can create more on a whim. When they create more dollars, it drives down the value of the dollar both immediately and in the long term. The value of precious metals cannot be created. It is discovered.