Instead of hiring competent people who understand how an economy works and what the role of the Federal Reserve should be in the economy, the people running the institution keep repeating past mistakes. The people running the Federal Reserve keep showing they have no real idea of how an economy works and what role the Federal Reserve should play in the economy.
Fundamentally, by looking at economic statistics one can see what is and what has always been wrong with the Federal Reserve. Here are facts about the Federal Reserve and inflation in the United States.
How the Value of One Dollar has Changed Before and After Federal Reserve
- Value of $1 (one dollar) from 1789 to 1912 - $1.10
- Value of $1 (one dollar) from 1913 to 2018 - $25.54
The top figures show how $1 (one dollar) changed in value in the United States from 1789 to 1912. Why those dates? In 1789, the United States Constitution went into effect. The Federal Reserve was created in 1913. So before the Federal Reserve was created the value of $1 (one dollar) in the United States barely changed over 123 years (from 1789 to 1912).
One dollar in 1789 was worth $1.10 in 1912. In other words, it cost people in 1912 just $1.10 to buy the same goods and services that people in 1789 paid a single dollar for. From 1789 to 1912, there was no inflation in the United States (except for war times).
The bottom figures show how $1 changed in value in the United States from 1913 to 2018. Of course, in 1913 the Federal Reserve was created and the institution began affecting the United States economy.
One dollar in 1913 is worth only $25.54 in 2018. In other words, it costs people today $25.54 to buy the same goods and services that people paid only $1 for in 1913.
The Federal Reserve has caused the dollar to lose a tremendous amount of value over the 105 years that the government institution has been affecting the United States economy.
As the numbers above clearly demonstrate, only the Federal Reserve causes inflation in the United States. Whenever there is inflation in the United States it is always the result of Federal Reserve policies. Before the Federal Reserve was created there was no inflation in the United States (except for war times).
The Federal Reserve was not created to cause inflation. A fact that has eluded the people running the Federal Reserve since the institution was created.
Today, instead of hiring people who understand how an economy works and what the role of the Federal Reserve should be in the United States economy, the people running the institution keep demonstrating that they will continue to make the same policy mistakes their predecessors have made.
That is what is wrong with the Federal Reserve.
For more see:
How the Federal Reserve is Screwing Up the U.S. Economy Right Now
Explaining Exactly Why the Great Depression Happened
Why You Must Do Calculations Before Making Financial Transactions
How to Get One Week's Worth of Groceries for Free
No comments:
Post a Comment