Quote:
Originally Posted by Ravager
[You must be logged in to view images. Log in or Register.]
The dollar started to lose it's value when the Federal Reserve was created, because from that point forward every dollar was printed as debt. Debt that is paid for by Federal Income Taxes (that's right, if there was no Federal Reserve, there would be no 16 Trillion Dollar Debt and you wouldn't be paying 20% of your paycheck to pay the interest on that debt). If there was no Federal Reserve, the dollar would only be worth a small fraction less than it was in the early 1900's, because the inflation would have matched the amount of new gold coming in the market which would have been less than 1% per year.
|
Yet the population grows at closer to 3% leading to more overall demand relative to the money supply
(EDIT: UNDER A GOLD STANDARD) which grows at 1% leading to a deflationary economy.
Who here is brave enough to ride the bimetallism horse?!