If I have no idea what I am talking about, answer one simple question for me:
How do I move a dollar through time from 1909 to 2009 in such a way that it looses value? How? No method exists.
If I am standing in 1909 with a US Dollar and I keep that REAL dollar until 2009, it gains value. If I deposit that dollar in the bank until 2009, it gains value. If I put that dollar in the stock market until 2009, it gains value. If I buy a bond with that dollar until 2009, it gains value.
There is no way to move a REAL dollar through time from 1909 to 2009 and have it lose value. There is an imaginary dollar that has lost value, but no REAL dollar has lost value since 1909. NONE. We live in reality, and REAL dollars have all gained value since 1909.
So I ask again: What method of holding a dollar from 1909 to 2009 would actually lose value?
No such method exists.
Uhhh, the numismatic value of paper has been confused with the value of the underlying currency to such an extent, it staggers the mind.
You have absolutely no idea what you are talking about.
No. REAL money. Why is this such a hard concept for people to understand.
What is a US Dollar?
A US dollar in its most real form is a piece of paper or a coin issued (in 1909) by the United States of America.
A 1909 penny sells today for $20. That is >1,000X its value in 1909. A 1909 S penny sells for $500. Those are not any special pennies. Those are just the pennies you would have used in circulation in 1909.
A 1909 Silver Dollar typically sells for $50. A paper US Dollar from 1909 sells for $100 or more. That would be the Series 1899 Vernon Treat Black Eagle. This is the actual REAL paper dollar printed by the US government in 1909.
These prices are not for specimens with any special numismatic value or superb condition. Simply US Dollars from 1909. The coins and bills you would have received at any bank or merchant in 1909.
Now, holding US currency for 100 years is a supremely naive investment strategy, but even employing this form of holding dollars results in an increase in the value of your dollars. REAL dollars have increased in value, not decreased.
There is no way to hold US dollars from 1909 to 2009 and have them lose value. Even simply putting dollars in a basic bank deposit would have seen them increase in value.
There is no REAL dollar that has lost money over the last 100 years. There is this imaginary dollar that has lost value, but that dollar does not exist anywhere in reality, and we all live in reality. . . . At least I do.
Let me guess, the paper money gets 'retired' after a few months and new paper money takes its place. Therefore each particular piece of paper money never loses any value because it no longer exists? Isn’t that akin to the old argument that ‘if a tree falls in the woods and nobody is there to hear it, does it make a sound?’
Wrong. You have cited an imaginary dollar that does not exist anywhere in reality. All REAL US dollars are worth many multiples of their value in 1909.
There is no method of moving US Dollars through time from 1909 to 2009 and lose value. None.
Even if we used the extremely naive strategy of merely holding US currency, our 1909 dollar would be worth 50X to 50,000X in 2009.
No REAL US dollar has lost value over the last 100 years. NONE.
So explain to me how you hold REAL dollars from 1909 and lose value???
What is the method?
If you hold them in the stock market they gained value. If you held them in bonds, they held value. If you held them in a bank, they gained value. If you held them as actual physical currency, they gained value.
How can you possibly get a REAL dollar from 1909 to 2009 and have it lose value. It is impossible.
Real US Dollars have not lost value in the last 100 years. It just has not happened.