The U.S. dollar has lost 95% of its value since the Federal Reserve was created in 1913.Do you know what that really means?I would wager a 1913 dollar that most people don't have a clue.It means due to inflation,we've had a 2,111 percent increase in prices in 96 years.A $10 suit in 1913 costs $211 today.These are consumer price index figures tracked by our Government,so this is fact,not opinion.It translates into a 95% loss in wealth,or purchasing power.
I mention the Federal Reserve because this is the demon that is responsible for nearly all of our economic problems today.I know the argument is centered on Obama and his agenda,or Bush if you hate Republicans,but a far greater threat to our way of life is the destruction of the dollar.Do yourself a favor and read Ron Pauls 'End the Fed'.He explains it clearly and concisely.The Fed was supposed to stop this boom and bust cycle our economy goes thru.The recession that just ended was number 18 since the Fed was created.Nice track record.
The only reason we have inflation is the Fed and it's policies.Period.They artificially manipulate interest rates and the money supply to attempt to control the markets.Today we hear we need liquidity to halt the credit crisis.That we need bailout funds for companies too large to fail.Stimulus money to jumpstart the economy.To raise the funds to do these things,we can raise taxes or sell debt to foreign entities or print money.Government is doing all 3.And when none of these are equaled out,or backed up by increased goods and services,you have inflation.We have more money than the equivalent goods and services which makes the price go up to buy the same amount.The end result is the $10 suit now costing $211.Just imagine that.Without inflation all these years,that's how far your dollar would go.We are so accustomed to seeing prices rise over time,we just accept it as fact without realizing there is no reason for it other than the Fed manipulating our money.
The Fed can create money out of thin air whenever it desires.It's usually done in a computer database rather than actually printing it,but it still counts the same.Whether it's Federal or State,our politicians are budgeting the same way by spending money they don't have.Like they have a money tree.Except eventually the green money leaves turn brown and fall to the ground and get turned into mulch.Nobody knows if we will eventually default on our debt or more likely simply devalue the dollar massively.That's when you get the Zimbabwe economy where everyone is a millionaire except that their dollars are virtually worthless and can't buy much.
Our political parties in power change and we go back and forth changing social policies accordingly.The loss of our wealth from the Fed is like a cancer that keeps growing and really will eventually destroy our way of life if we don't stop it.If you don't believe it,unfortunately,when you are forced to accept it,it will be too late to stop it.It's not a Democrat or Republican issue.Everyone will lose.Do your own research and decide for yourself if you can afford to simply sit back and do nothing.More to come...