“If the practice of covering government deficits with the issue of notes, then the day will come without fail, sooner or later, when the monetary systems of those nations pursuing this course will break down completely. The purchasing power of the monetary unit will decline more and more, until finally it disappears completely.”
The above chart shows the performance of the Dow in real money – gold ounces. The chart shows that an investment in the Dow has shown no real return, before inflation, in gold ounces since 1990. An investment of about 44 ounces at the Dow peak would now only return about 8 ounces – an 81% loss.