Yuma
Suns are my Kryptonite!
Currently reading a book titled Currency Wars by James Rickards, copyright 2011. (it was a national best seller at the time)
In it there's a quote about the devaluation of the dollar:
"From it's creation in 1913, the most important Fed mandate has been to maintain the purchasing power of the dollar; however, since 1913 the dollar has lost 95% of it's value. Put differently, it takes twenty dollars today to buy what one dollar would buy in 1913."
Of course that was written prior to 2011 publishing date.
An AI update says:
Since 1913, the US Dollar has lost significant purchasing power, with estimates often placing the loss at over 97%, meaning what $1 bought in 1913 now costs around $30-$31, primarily due to inflation, increased money supply, and the shift away from the gold standard, leading to a drastic devaluation where today's dollar buys only a few cents' worth of 1913 goods.
Key Factors in the Decline:
In it there's a quote about the devaluation of the dollar:
"From it's creation in 1913, the most important Fed mandate has been to maintain the purchasing power of the dollar; however, since 1913 the dollar has lost 95% of it's value. Put differently, it takes twenty dollars today to buy what one dollar would buy in 1913."
Of course that was written prior to 2011 publishing date.
An AI update says:
Since 1913, the US Dollar has lost significant purchasing power, with estimates often placing the loss at over 97%, meaning what $1 bought in 1913 now costs around $30-$31, primarily due to inflation, increased money supply, and the shift away from the gold standard, leading to a drastic devaluation where today's dollar buys only a few cents' worth of 1913 goods.
Key Factors in the Decline:
- Creation of the Federal Reserve (1913): Marks the starting point for tracking the dollar's decline as the central bank took control of monetary policy.
- Inflation: The general increase in prices and fall in the purchasing value of money is the main driver of this loss.
- Growing Money Supply: The Federal Reserve's ability to print more money (fiat currency) increases supply, diluting its value.
- Abandonment of the Gold Standard (1971): Ending convertibility to gold removed a key restraint on money printing and accelerated inflation.
- From $1 to ~4 Cents: One dollar in 1913 has the same buying power as less than 4 cents today.
- Purchasing Power Loss: A dollar today buys significantly less than it did in 1913, with figures showing a loss of around 96-97%.
- If you had $1 in 1913, you would need roughly $30-$31 today to buy the same basket of goods and services.
