Chocolate Gold Coins

Almost 40 years ago to the day August 15, 1971, U.S. President Nixon has a decisive step - has decided to "close the gold window" In other words, America has taken, and then the world, the gold standard. .

From that day in which governments around the world have been freed from the discipline of the peg to the care of their pounds, dollars and Swiss francs for the available supply of gold in their vaults. You may now roll the printing presses 24 / 7 andnew money at will. Too predictable, is inflated the money supply in the world. Even more predictable, the prices of goods and services because of the recovery.

What has this to do with Mars bars, you can ask to do? Now, in 1971, I was a trouble-free, soccer-obsessed 10-year, to 30p a week pocket money. I did not know at that time to measure my wealth in pounds, dollars and Swiss francs, but in how many panels would extend my money in my pocket chocolate - and my indulgence of choice forAt that time, you guessed it, the Mars Bar.

At that time I could not take the time extent of the impact "Tricky Dicky" Nixon's epochal decision, the world to the gold standard would have on my life and childhood, most importantly, my ability to fund my chocolate.

In fact, my confidence was a correction regular chocolate childhood piggy bank as prone to the ravages of inflation in 1970, as a mom and dad to make the bank account.

Just toillustrate this point, the last year or two, the price of a Mars bar has remained fairly stable, with an average of about 3 cents. By the end of 1972, however, the same bar, Mars had risen by two thirds to 5 pence. I do not think the piggy bank again!

One reason for this excursion shocking prices was typical of the United kingdom in February 1971, the country decimalised its currency, abandoning the old pounds, shillings and pence. many retailers, including local bakeries in the vicinity, Where I lived, could not resist this opportunity to complain once in a lifetime, instead of rounding prices down, and I remember my parents when the whole thing was a big disadvantage.

The main reason for the increase, however, was undoubtedly the impact on commodity prices as a result of the gold standard. Because cacao and sugar were two of the most important raw materials in time and also the most important components of a Mars bar is concerned, I thought it might be instructiveto monitor the relative affordability of my favorite chocolate treat over the past 40 years.

So we begin by comparing the time of my situation with the situation today Chocaholic 10 years. And the best way to do this is to find out how much a Mars bar in real terms in 2011 compared to 1971?

Well, the price in my neighborhood grocery store is now 55P - which is eleven times since 1971. But wait! We must consider that in 2009, however,Mars bars reduces the size of their peak of 7.2% shocked. So in 1971 a similar size Mars bar would be set today in 10 years, 59p back - which is almost 12 times greater.

Now I wonder what would happen if, in 1971, I had a wise old uncle, who advised me, the pennies in my piggy bank to convert to equivalent amounts of gold. If I had followed his advice, what would have helped me keep my unhealthy habit of chocolate have in the past 40 years and wouldPiggy was so fast (I know, the concept of 50 years, it sounds like a piggy bank while a suspect ', but bear with me on this) dried up?

Now let us quickly through the math: in 1971, was the price of an ounce of gold $ 35, who has worked with the speed at the time of $ 2.40 per pound to 14.58 pounds per ounce d ' gold when there are 14 pounds. divide by 58 5p (the price of a Mars bar until the end of 1971), we find that 1 ounce of gold would buy 291.6 MarsBar

Today, thanks to the government and bankers generated inflation, an ounce of gold worth € 990 If we do this amount by 1971-equivalent price of a Mars bar (59p) per share, we find that a gram of gold bullion buy now Mars in 1678.

In other words, if I imagined the advice of my wise old uncle followed in 1971, transformed my piggy bank savings bank gold and kept that gold would be up to date, I may be able to almost six times more of MarsToday, bars such as 10 years - quickly, pass the sick bag!

The lesson that you should really all jokes on Mars bar, which is gold, what people used their money back before 1971 in the price, more goods and services actually declined in price, has not been raised - and in some cases by a wide margin! The dirty little secret is that you do not hear on mainstream media, not by UN-backed paper money to their citizens, governments andBankers have robbed ordinary people who work hard at the benefits of these lower prices and put the difference yourself. And they have done for the last 40 years! In a nutshell, explains why the rich are still rich and the poor poorer - use the one with is much larger than the decimal system, to complain that my mom and dad, bless' em.

So if there are financial literate10 old who just happen to read this articleWho fear that their income is not keeping up with their pocket money expenses candy, it's time to take a stand. My advice is to "Just Say No" to the child exploitation and bankers bankruptcy, and ask that mummy and daddy to pay in gold coins (and not the variety of chocolate is wrong) to get started. your parents can rest easy in the knowledge that will be in 40 years, their descendants are the finances in good shape - though perhaps not as trueto life.

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