Is Gold Overvalued ?

A while back, someone smarter than I said that the reason for prices being higher for commodities today was inflation. He continued my education by pointing out that a suit of clothes that cost a man 1 ounce in gold in 1929 still costs the same 1 ounce of gold today.

That was told to me when gold was $300 U.S. an ounce, and I could buy a good suit for $300 U.S., so I had little reason to doubt it.

However, gold is now $1200 U.S. an ounce. In the twelve years since that lesson I can still buy a good suit for $300 U.S. (not Armani, but a suit of clothes good enough to wear to court)
Have there been that many improvements in clothes making technology ? Has there been that big an influx of new clothiers ?

If price is all about supply and demand, and it is when there is no government interference to skew anything, then what happened ?

In an effort to see what prices have been effected by inflation I looked at the staples from 1925 (gold valued at $20.64 U.S.):

Bread 9¢/lb
Butter 55¢/lb
Chicken 39¢/lb
Coffee 50¢/lb
Eggs 55¢/doz.
Flour 31¢/5 lb
Milk 28¢/1/2 gal.
Potatoes 36¢/10 lb
Sugar 33¢/lb

Assuming that there were no disproportionate adjustments in supply and demand and no change in government subsidy/taxation, this would translate to a current value of(gold valued at $1210 U.S.):

Bread $5.28/lb
Butter $32.24/lb
Chicken $22.86/lb
Coffee $29.31/lb
Eggs $32.24/doz.
Flour $18.17/5 lb
Milk $16.41/1/2 gal.
Potatoes 21.10/10 lb
Sugar 19.35/lb

Either we have done some incredible things when it comes to producing and distributing staples to the American populace or the government has subsidized foodstuffs to the point that we are all paying for the savings at the grocery store in higher taxes elsewhere or the price of gold is over valued or there is a reckoning coming of epic proportions.

To Democrats Arizonans Are Nothing

Americans understand the concept incased in an old chestnut that only I can disparage my kin.

We know that it means when an outsider does it, he risks the wrath of family loyalties.

Blood is thicker than water, and all that.

The Democrats in congress made it abundantly clear that they hold no familial loyalties with the People of Arizona.

This Is A Way Better Idea Than 'Everybody Draw Mohammed Day'

So I ain't gonna wait.

For the first time Miss USA is a Muslim.

Respect It:

Now, don't that beat hell out of the other plan ?

The Cabal Pushing For The End Of U.S. Sovereignity Gets Their Latest Effort Through Committee

Of course there is a conspiracy in The Senate to do this. Old Dickie "The Dirtbin" "Turban" couldn't do this alone. Would that it were the lonely idiot himself.


No this needed the unhinged Sen. Pat Leahy's help. Who as chair or The Senate Judiciary Committee had no qualms about pushing a pet of his through.


Even the use of nuclear weapons in retaliation would be considered to be a "Crime Against Humanity".


Apparently crying Nazi and Raaaaacist aren't enough anymore the left has dialed up the rhetoric to "Crime Against Humanity".


I wonder if there is a corollary to Godwin's Law that covers this.


Need any more reasons to vote out incumbents ?


Please come back Jack Ryan !

The Next Time You Get Grief For Drinking Water From A Plastic Bottle.......

Ask that person why they hate poor black Africans !

Every innovation has more than one application.

This is pure genius.

Does White House Read The Heritage Blog ?

Such incredible timing.

They certainly couldn't have done the more wrong thing than this.

No Need For A Scare Tactic When You Can Use This

As the headline at The Heritage Blog plainly states: The Very Real Short-Range Missile Threat Obama Is Ignoring.


Watch the video and wonder if the sociopaths that can afford these can afford a few tractor-trailers and/or the shipping costs on a "Liberian-flagged" freighter, or two.


H/T: Jefferson's Rebels

The New Jihad - A "Cry Wolf" Strategy

Another day, another bomb scare in NYC.

Seems as if the plan is to keep 'em scared until they get tired of all the false alarms.

Then...................................

Happy Siete De Mayo !

Or as we call it around here*: The Day the rebellious Mexicans had their sombreros handed to them by the French after they got all uppity on the 5th.

Proof that the day ought to have been called drink-o de mayo. Because only a completely drunk people would celebrate a day that they got off one good shot and sleep through the reprisal that came from it.

No wonder the "holiday" was created by the Corona beer people.

* my house

That Poor, Poor Guy

Yahoo! start page news has a truly heart-rending story of the unraveling life of a jihadi:

Not long ago, Faisal Shahzad had a pretty enviable life: He became an American citizen after emigrating fromPakistan, where he came from a wealthy family. He earned an MBA. He had a well-educated wife and two kids and owned a house in a middle-class Connecticut suburb.

In the past couple of years, though, his life seemed to unravel: He left a job at a global marketing firm he'd held for three years, lost his home to foreclosure and moved into an apartment in an impoverished neighborhood in Bridgeport. And last weekend, authorities say, he drove an SUV loaded with explosives into Times Square intent on blowing it up.

 It just brings a tear to your eyes.

They just cannot figure out how a guy who had it all could have such bad luck.

It can't be that when he decided to let his hatred consume him that all else was unimportant. He just had a run of bad luck and snapped.

Lone wolf style.