Bitcoin Forum
December 10, 2016, 11:00:36 AM *
News: To be able to use the next phase of the beta forum software, please ensure that your email address is correct/functional.
 
   Home   Help Search Donate Login Register  
Pages: [1]
  Print  
Author Topic: The Record of the Federal Reserve  (Read 953 times)
GideonGono
Sr. Member
****
Offline Offline

Activity: 398


Long Live The FED


View Profile WWW
June 18, 2011, 05:23:54 PM
 #1

I just came across this interesting article:

http://evoorhees.blogspot.com/2009/07/record-of-federal-reserve.html

Quote
Let’s talk about The Federal Reserve. Consider the following facts:

    * From 1776 to 1912 (136 years), the value of the dollar, relative to the Consumer Price Index, increased 11%. A dollar could buy 11% more goods in 1912 than in 1776. Thus, if in 1776, you sat on your savings pile of $1,000,000 for 136 years, it would then be worth $1,110,000 in purchasing power (it will have appreciated in value by 11%). A loaf of bread for Thomas Jefferson cost the same as a loaf of bread for Lincoln 50 years later and again the same for J.P. Morgan 50 years after that.

    * The United States Federal Reserve was created in 1913. The stated purpose of the Fed, by its own definition taken from its website, is to “conduct the nation's monetary policy by influencing money and credit conditions in the economy in pursuit of full employment and stable prices.” Note that “stable prices” is another way of saying “stable dollar,” they are two sides of the same coin (couldn’t resist the pun).

    * Then 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 (it will have depreciated in value by 95%). One would now need to pay about 20X more than J.P. Morgan for one’s bread. Ask my mother how much the price of milk has increase just in the last ten years alone.

1481367636
Hero Member
*
Offline Offline

Posts: 1481367636

View Profile Personal Message (Offline)

Ignore
1481367636
Reply with quote  #2

1481367636
Report to moderator
1481367636
Hero Member
*
Offline Offline

Posts: 1481367636

View Profile Personal Message (Offline)

Ignore
1481367636
Reply with quote  #2

1481367636
Report to moderator
1481367636
Hero Member
*
Offline Offline

Posts: 1481367636

View Profile Personal Message (Offline)

Ignore
1481367636
Reply with quote  #2

1481367636
Report to moderator
Advertised sites are not endorsed by the Bitcoin Forum. They may be unsafe, untrustworthy, or illegal in your jurisdiction. Advertise here.
1481367636
Hero Member
*
Offline Offline

Posts: 1481367636

View Profile Personal Message (Offline)

Ignore
1481367636
Reply with quote  #2

1481367636
Report to moderator
1481367636
Hero Member
*
Offline Offline

Posts: 1481367636

View Profile Personal Message (Offline)

Ignore
1481367636
Reply with quote  #2

1481367636
Report to moderator
1481367636
Hero Member
*
Offline Offline

Posts: 1481367636

View Profile Personal Message (Offline)

Ignore
1481367636
Reply with quote  #2

1481367636
Report to moderator
hugolp
Hero Member
*****
Offline Offline

Activity: 742



View Profile
June 18, 2011, 05:56:48 PM
 #2

This video by George Selgin about the record of the Fed compares data from the XIX century when USA had no Federal Reserve with the data of the XX century with the Federal Reserve, focusing on production and stability of production (the cycle). Highly recomended.

http://www.youtube.com/watch?v=yLynuQebyUM
heavyb
Full Member
***
Offline Offline

Activity: 217



View Profile WWW
June 18, 2011, 08:23:45 PM
 #3

end the fed.

evoorhees
Legendary
*
Offline Offline

Activity: 994


Democracy is the original 51% attack


View Profile
June 19, 2011, 12:47:20 AM
 #4

Hey that's MY article!!  LOL

I'm glad you like it  Grin

Pretty lousy record huh?
saqwe
Full Member
***
Offline Offline

Activity: 224



View Profile WWW
June 19, 2011, 01:20:43 AM
 #5

end the fed

+1

Pages: [1]
  Print  
 
Jump to:  

Sponsored by , a Bitcoin-accepting VPN.
Powered by MySQL Powered by PHP Powered by SMF 1.1.19 | SMF © 2006-2009, Simple Machines Valid XHTML 1.0! Valid CSS!