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Most people don’t fully appreciate how
poorly the Fed has managed the currency since cancelling the dollar’s
convertibility into gold in 1971. That brazen act cut the ties between the
dollar and any fundamental value, leaving only political restraint to
underpin the dollar. The chart below paints a clear picture of the result.
Said another way, if my maternal grandparents had
set aside $100 for my mother who was born in 1914, and as she is still
living, it now requires nearly $2,075 to buy what $100 purchased in 1913.
In time, and maybe in our time, the piper has to
be paid. And make no mistake, the price of too many
dollars chasing too many goods is inflation. And record money creation leads
to record inflation.
By :
Charleston Voice
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