Replies to post #4490 on Velocityshares Daily 2X Vix Medium Term (TVIZ)

[gldtimer]

Interesting question.

Using the Rule of 72, which give the number of years to double 2/1 or half 1/2 and the historic annual rate of inflation @3.5% per year. The dollar should be worth 1.5 cents (98.5% loss of purchasing power) by roughly 2030.

This of course is under the HUGE assumption that the rate of inflation remains unchanged.

Note the dollar can never go to zero, instead zeros are added. Example: if the dollar was worth 1/100 of one cent vs 1913 purchasing power the loss in purchasing power would be 99.9%

Another way of saying this is that what cost $1.00 in 1913 would cost $1,000 !

Or losing 99.99% of purchasing power equals $10,000 !

Inflation is a product of the monetary base x turnover. If QE 2x the money base but turnover falls by 50% prices are unchanged.