Buffett’s Math Trumped by Gold
By GCRU Gold News on Monday, February 29 2016, 23:25 - Permalink
We cannot prosper as a society unless we are using the right measurement tools. In this piece I showed how Warren Buffett was able to fool most people into believing they are six times better off today than their ancestors. It’s easy to convince anyone of anything if the author is both brilliant, powerful, and has an artifice through which they can distort the past. By using a measurement tool that is totally arbitrary such as the CPI to deflate nominal GDP per Capita, Buffett attempts to show empirical and logical analysis.
In reality, he diverted the public’s attention from a critical factor: that the historical dollars were redeemable in gold.