Gold and just how much is the US dollar worth these days?
Posted By RichC on September 6, 2025
It is not as if I haven’t been watching … and whining about … inflation and what the US dollar buys these days, but until seeing comparisons that pit the US dollar against the average American’s family budget … it is harder to comprehend. Still we all know what we buy and how much everything costs … be it food, housing, autos, etc.
But one chart that was shared online last week didn’t have to do with what we all buy each week, but reflect just how the value of a “dollar” has fallen in recent years compared to gold (a long time store of value — and likely a mistake in parting with miscellaneous junk back in 2010). A LOT has to do with the US Federal debt and deficit considering we are now $37+ TRILLION dollars in debt to those who hold our debt and eventually expect to be paid back with interest. If we can’t find buyers of our debt … print more money and offer buyers of our debt more interest. Yikes … I suspect we can see where this is heading.
But … let’s say we get a handle on our Federal budget … and start using tariff income or increased tax revenue to pay down the TRILLIONs we’re in debt (highly unlikely) … that means less money for government and all the pork Congress hands out. More likely, we’ll end up taking on even more debt and further devalue the US dollar. Congress and our Fed will “try” to maintain the status quo and if we are lucky, tighten the nation’s belt. No doubt they will pinch citizens harder and cut back on those expecting support from government. I’m just not sure how much the retiring generation or how more the next generation will take before revolting?
I’m all eyes and ears looking for a brighter scenario … but don’t see it at the moment?
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