The View From 1776

Big Bag-of-Wind Bernanke

The Record of the Federal Reserve

Quote:

From 1776 to 1912 (136 years), the value of the dollar, relative to the Consumer Price Index, increased by 11%. A dollar could buy 11% more goods in 1912 than in 1776…After the Fed’s creation, from 1913 to 2008 (95 years), the value of the dollar, relative to the Consumer Price Index, decreased by 95%. A dollar could buy 95% fewer goods in 2008 than in 1913. Thus, if in 1913, you sat on your savings pile of $1,000,000 for 95 years, it would then be worth only $50,000 in purchasing power…

Posted by .(JavaScript must be enabled to view this email address) on 08/29 at 03:25 PM
  1. The federal resrve is a fraud. Chairman after chairman like to speak of the 'mandate' of the fed as "price stability and full employement". The idea is absurd, as if top-down social engineering by a banknig elite will do anything but fill the pockets of the 'regulated' banksters while buying votes for idiot politicians at the expense of ignorant voters . Free banking, markets, individual liberty, individual responsibility and the capitalism which follows are the only answers. Like vulgar Keynesianism, the fed is merely cover for the political class at the expense of the people. Another not so well intentioned progressive shell game.
    Posted by .(JavaScript must be enabled to view this email address)  on  08/30  at  01:01 PM
  2. The post is another example of gullible T. Brewton beliving what he reads.

    There is no way to truly compare values or costs over the centuries. In our nation's early history, bartering was commonplace and often supplemented or replaced currency. The unit of exchange could be livestock, a fur pelt, or a bushel of grain. The currencies in use in our early history came from Britain, Spain and France, with each colony introducing its own currency.

    The official U.S. dollar did not come into existence until 1861, so Tom's quote about the value of a "dollar in 1776" is horse manure.
    Posted by .(JavaScript must be enabled to view this email address)  on  08/30  at  05:42 PM
  3. 1913. 1 oz gold. $20.67. In 1800 gold priced at approx. $19.00 .oz US currency redeemable in gold at that price.Current price @950.00 us $. US currency no longer backed by gold or silver. 1 million dollars in 1913 gold is worth approx. 46,000,000 in US fiat currency today. Backed currency tends to appreciate over time while a depreciating currency encouranges consumption over savings and capital formation. Purchasing power, measured in commodities, is remarkably stable over centuries. Who benefits from inflation?
    Posted by .(JavaScript must be enabled to view this email address)  on  08/31  at  08:12 AM
  4. Per the Wikipedia:

    The Coinage Act or the Mint Act, passed by the United States Congress on April 2, 1792, established the United States Mint and regulated coinage of the United States. The long title of the legislation is An act establishing a mint, and regulating the Coins of the United States. This act established the dollar as the unit of money in the United States, declared it to be lawful tender, and created a decimal system for U.S. currency.
    Posted by .(JavaScript must be enabled to view this email address)  on  08/31  at  03:58 PM
  5. Mr. Jay:

    With regard to whether "There is no way to truly compare values or costs over the centuries," it is no more difficult to do that than it is to compile today's indices for consumer, wholesale, and producers' prices. The composition and weighting of the components of each changes over time and often involves considerable degrees of estimation, e.g., habitation costs, which are a blend and somewhat arbitrary weighting of rents, real estate taxes, insurance, utilities, repairs and maintenance, and all the other costs of living quarters.

    There are, and have been for many decades, detailed studies of prices and purchasing power of the dollar. One of the more interesting presentations is Kenneth Fisher's "The Wall Street Waltz," which is a book of charts and graphs covering those statistics, among many others. Mr. Fisher uses graphs prepared by the Foundation for the Study of Cycles, Inc., 124 Highland Avenue, Pittsburgh, PA 15206; "Dow 3000" (1982), by Thomas Blamer and Richard Schulman; "World Prices and The Building Industry" (John Wiley & Sons, London, 1937), by George F. Warren and Frank A. Pearson; and "Industrial Fluctuations" (MacMillan & Co., Ltd., London, 1929), by celebrated economist A. C. Pigou, fellow of King's College, Cambridge, where he held the chair of political economy.

    These charts cover, for the United States, the period from 1749 into the the 1980s.
    Posted by .(JavaScript must be enabled to view this email address)  on  08/31  at  04:26 PM
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