Why did the Federal Reserve Devalue the U.S. Dollar to 5 Cents?
Why did the Federal Reserve Devalue the U.S. Dollar to 5 Cents?
The Federal Reserve took control over the United States money supply in 1913. Since then, the buying power of a dollar has decreased by 95% according to data from the Consumer Price Index (CPI). The Federal Reserve’s laissez faire attitude toward inflation has made the US dollar all but worthless.
In the early 1900’s prices looked a lot different than what they did today. Consider a typical restaurant. A drink of coffee, tea or milk at a restaurant could be had for just five cents. A main course meal of pork tenderloins, roast beef, pork and beans or chicken fricassee could be had for just twenty cents. For desert, a rhubarb apple pie, lemon layer cake or green apple pie could be had for just five cents. A family of four could eat a restaurant for just $1.50—and groceries were even cheaper.
Why have prices increased so dramatically in the last 100 years? We expect that prices naturally increase over time, but what if it didn’t have to be that way? What if instead of regular prices increases for a gallon of gasoline, a quart of milk or a meal at a restaurant went away? What if prices were so stable, that you could memorize the cost of most items at the grocery store?
The price increases (inflation) that you have seen as you have grown up are largely the result of the Federal Reserve mismanaging America’s currency. One of the Federal Reserve’s primary tasks is to minimize the level of inflation, but the inflation rate has increased dramatically since the Federal Reserve has taken over the money supply.
If the Federal Reserve’s job is to promote a healthy economy and to keep inflation at a manageable level, why has the U.S. economy grown at a slower rate since 1914 than it did before the Federal Reserve System was implemented? The price of goods have also increased at a much greater rate since the Federal Reserve System went into effect, even though that period included the greatest deflationary period—the Great Depression and the period before 1914 included the greatest inflationary period—the Civil War.
Continue reading: http://www.americanbankingnews.com/2009/09/06/editorial-why-...
Why do
Counterfeiters counterfeit?
Try more like 2.5¢
Using the governments own inflation statistics.
China is pissed about the Fed, that is for sure.
China alarmed by US money printing
The US Federal Reserve's policy of printing money to buy Treasury debt threatens to set off a serious decline of the dollar and compel China to redesign its foreign reserve policy, according to a top member of the Communist hierarchy.
By Ambrose Evans-Pritchard, in Cernobbio, Italy
Published: 9:06PM BST 06 Sep 2009
Cheng Siwei, former vice-chairman of the Standing Committee and now head of China's green energy drive, said Beijing was dismayed by the Fed's recourse to "credit easing".
"We hope there will be a change in monetary policy as soon as they have positive growth again," he said at the Ambrosetti Workshop, a policy gathering on Lake Como.
"If they keep printing money to buy bonds it will lead to inflation, and after a year or two the dollar will fall hard. Most of our foreign reserves are in US bonds and this is very difficult to change, so we will diversify incremental reserves into euros, yen, and other currencies," he said.
China's reserves are more than – $2 trillion, the world's largest.
http://www.telegraph.co.uk/finance/economics/6146957/China-a...
Indirect theft could be prolonged incontrast to direct thievery
They saw a gold mine in America and they wanted it all, to milk every last penny out of us over the course of history.
Like the frog in the heating water, we kept adapting to the changes. We are at the near boiling point now, so we are trying to get out of the pot. Can we and can we also put these bastards in our place? I like to read "Hansel and Gretel," great story.
Because it is a Keyensean instrument ....
By definition the goal is low, sustainable inflation rates.
Compounded over almost a century, it adds up.
Their goal has always been 2 - 3% inflation.
With a goal like that, what else would have been the outcome?
As a result, there is a concentration of wealth. People that get their hands on the FRN before the velocity factor is added to it, has a more valuable FRN.
WAHOR!!
http://www.dailypaul.com/node/48994
WAHOR!!
http://www.dailypaul.com/node/48994
GREED!
I think the dollar is worth closer to 4 cents of the 1913 dollar - maybe less.
The reason? Greed. That wealth was stolen from the American people by criminals - politicians and bankers. It's that simple.
The wealth didn't just disappear - it was stolen. Imagine an auction - that's what the Free Market really is. Prices are based on what the consumer will pay for goods and services. Now imagine that you have the ability to create new "money". Not real money as defined by our Constitution; gold and silver coin, but fiat money - legal tender.
Now when you continue to print this non-redeemable legal tender fiat money over a period of years, the money supply is increased tremendously. This is called INFLATION, and it results in an increase in prices and wages. The increase in prices and wages do not constitute inflation, they are the result of inflation.
If you or I do this, it is called counterfeiting. But when governments and central banks do it, it is called inflation. But the result is the same. Prices and wages will rise - and those who are the first users of this new counterfeit/fiat money benefit at the expense of the rest of us. Inflation is stealing, just as counterfeiting is stealing.
So, why did the Federal Reserve print up all of these non-redeemable federal reserve notes? Greed. The stockholders of the Federal Reserve (which these gangsters wish to conceal) benefit by creating new federal reserve notes our of nothing! They purchase interest bearing treasury bonds with this "money" they have created out of nothing. The interest on these bonds becomes the National Debt. And our politicians get to use this new "money" in addition to what they have received in tax revenues. So, inflation is actually a tax, but it is a tax based on stealing.
Wow, another
great article, thanks for posting. End the FED. Audit the FED. I am FED up.
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The Fed decided a long time
The Fed decided a long time ago that if they keep inflating the currency people will spend more (why save something that you know is going down in value?) and that will cause economic growth. The more people spend the more we produce and the more we have jobs. The question is how long can they keep it up before the system collapses of its own weight?