2,224.1% inflation since 1913. That is what has happened to the US currency since establishing the private federal reserve banks and abandoning any real commodity backing. The dollar inherently means and stands for nothing beyond a promise to repay a debt. It is a debt instrument, not one of wealth or even potential.
This means that the dollar is at about 4.3% of it's value since 1913. How's that for a loss on an investment? 4.3% current value, or 95.7% lost value. Did you get rich? Neither did I. All fiat currencies eventually collapse if inflation is ever-present, from the lowly Zimbabwean dollar the great Roman Denarius. Collapse is all but guaranteed in the long-run, as value only moved in one direction; down.
In communist Russia, the sad joke was that it took a basket of paper rubles to buy a loaf of bread, when it could be found. Dmitry Orlov wrote about this, living in America now and writing about similar issues here. Policymakers promoted inflation to foster growth, which didn't happen. It's not much better today, except for the growing elite class. Hyperinflation took root and could not be dissuaded, which led to the total collapse of the currency. The social result was disaster, leaving nearly an entire population destitute. Will Americans learn from history, or will American-branded socialism sound like a good deal until we reach the same end-of-line?
Economists will tell you that prices fall over the long-run when markets are most sustainable, since markets become most efficient when left to find a natural equilibrium without interventionist policies like import/export tariffs or consumption taxes. When the Fed cranks up the presses to kick-start economic growth, it devalues the dollars the individual consumer holds in hand, which violates the non-aggression and property rights principles and is theft at it's most basic since it was not done at the consent of every consumer holding dollars. The same results from fractional reserve banking, where "money" is created by loaning out "money" which does not exist.
Inflation Calculator | Find US Dollar's Value from 1913-2012
More bad news, inflation is here to stay (well, at least until the dollar completely collapses);
American consumers got a bit of a break in April as US inflation was flat for the month, the US government reported today in Washington.
Consumer prices were unchanged in April and for the first time since December, thanks to falling energy costs. The unchanged reading followed a 0.3% increase in the previous month when gasoline and other energy items were on the rise.
US Labor Department inflation data shows that gasoline prices dropped 2.6% last month compared to March and February increases of 1.7% and 6.0%, respectively. Read more
US inflation tamed just a bit in March and over the past twelve months as energy prices increased at a slower pace last month, the US government reported Friday in Washington. Still, the costs of food and most other goods and services went up last month to add further distress to the pocketbooks of many Americans.
Consumer prices advanced 0.3 percent in March after increasing of 0.4 percent in the previous month, US Labor Department inflation data revealed. Increases were again led by energy, followed by food.
Prices at the pump grew 1.7% last month, although that was significantly slower than the prior month’s 6.0 percent surge which had been the main driver to the biggest monthly increase in consumer prices since April 2011. Read more
While the annual percentage rate remained unchanged, US inflation climbed sharply in February as soaring gasoline costs drove the biggest monthly increase in consumer prices since April 2011.
Consumer prices rose 0.4 percent in February after an increase of 0.2 percent in January, the US government reported today in Washington. The cost of food was actually flat last month, marking the first time food prices have not advanced since July 2010. But energy prices surged in February as prices at the pump jumped 6.0 percent. Read more
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