These days the goat traders began peddling goat crowded at the edges of the road, I noticed the goats are the price was above Rp 1 million, one of the goats.
Why yes rising very fast?. This is the reality of our money purchasing power.
Price goats are actually not changed for 1400 years. At the time of the Prophet Muhammad goat prices in the range of 1 Dinar; the current one dinar (USD 1,215,000 at the time I write this article) still be able to buy a goat with a size medium.
Not so with good bills that amount, U.S. $ or bank notes of any country - no one has proven to survive in the long term.
If the trend of price increases goat (same with dinar prices) remains as the average trend of the last 40 years ie up 23:30% / year; the goat sacrifice is now worth USD 1.2 million, 5 years would be USD 3.4 million and 40 years would be USD 5.22 Billion!Wow do not make sense then?.
Again, this is the reality of our money. Use the basic financial formula FV = PV * (1 + i) ^ t then you will see these figures.
Still does not make sense to buy a goat for Rp 5.22 Billion?; When I was 5 years old goats the price of only Rp 1.600 silver. At that time (if I have to think anyway) certainly did not imagine that 40 years later the price of goat to Rp 1.2 million!, But this is now happening.
Before the price of goat to Rp 22.05 billion; very much that could happen to our fiat money. Therefore, understanding the impact of inflation on the purchasing power of our money in the long span of time is necessary under our control so we do not become victims of inflation.
Our fathers, our brothers who first entered the retirement age a lot of which are now suffering financially - because they become victims of inflation that they never realize - let alone back to his anticipation.
Consider the graph above example. If you have an older brother who started working in the '60s, then retired in the 90s, what happened now?.
Pension money collected from their efforts while working 30 years, the value becomes very meaningful because goat prices have gone up 720 times were compared with the price of goats at the time they start working..
So if we must-do move our pension funds in the goat? Why not? .
But the goat is just the representation of real assets that have value maintained; in addition to the goat would be to other real assets in the form of Gold Dinar, plantations, agriculture, animal husbandry, fishing and lots of other investment options real objects. Productive and God willing no inflation eroded. Allaah knows best.
