Quote:
Originally Posted by blkgsr
sure, if you have CDN/USD....but the people down there aren't making north american comparative money
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I wasn't referring to the income/cost of goods ratio, but rather looking at how the increase of goods in nominal terms is heavily correlated to inflation/governmental spending. And when looking from an alternative, or more stable unit of valuation, the real value is nearly constant.
Gold is usually a good measurement of real price in long term.
Gold price in 2007 was between 700-800USD. USD:CAD was roughly at par. A meal (say a benton or a noodle soup) at food court in Richmond was about $5-7. Thus, for simplicity sake, let's say an oz of gold would get you 150 meals.
Today gold is at 3000USD, or ~4300CAD an oz. A meal in Richmond food court is now 15-20, meaning an oz of gold would get you 200 meals. Of course, you can say gold is slightly inflated as of now, but looking in term of gold, which its valuation is stable (adjusting merely to inflation) in long term, our meals didn't get any more expensive than it used to be.