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A Dollar Saved is a Devalued Dollar.

In Money Supply on March 27, 2011 by CQCA

The chart above compares $1.00 invested in a 6 month CD on an annualized (banker’s year) basis in 1963 compared to M1 and M2 indexed to 1.00 since 1963.  A dollar invested in 1963 would be worth $17.25 in 2010, but M2 has increased 22.33 times over the same period.  This should mean that the saver actually had less wealth than when they started.

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