Sovereign Man is a pretty cool blog authored by Simon Black, an expat with a very good take on money & government and how government, combined with crony capitalism, can screw the pooch in more ways then one can count. From the esteemed Mr. Black comes a unique way to properly ascertain inflation in a way that is both commonsensical and astute. To whit:
$100 simply isn’t the awe-inspiring symbol of wealth that it used to be. And that’s because of inflation.
As money changes hands during routine transactions, the constant wear and tear eventually starts to break down the paper.
According to the Federal Reserve, for example, a typical $1 bill lasts for about 5.8 years before becoming so fragile that it gets withdrawn from circulation and destroyed.
But what’s interesting is that, even as late as 2011, the average $100 bill lasted 21.6 years before becoming worn out.
So according to Federal Reserve data, the average lifespan of a $100 bill has fallen by more than 30% over the last several years.
Makes sense, doesn't it?