Friday, March 26, 2010

Hyperinflation 101

"This may surprise you, but we've only had long-term inflation since the Federal Reserve was established in 1913 and they got control of our money supply. They have steadily increased the money supply faster than than the increase in the amount of goods and services that that money will buy. The result is that money has become worth less and less until, today, a dollar has about the same purchasing power as four cents had in 1913."
"Prior to the Federal Reserve, our currency had an amazing amount of stability for more than 100 years because it was based on gold. That is, prices remained pretty steady for over a century. The only thing that really happened is that prices went down as one technological advance after another made life easier, crops more plentiful, and businesses more efficient. There was a blip of inflation during the Revolutionary and Civil Wars, but those passed when those wars ended."
Great article from Backwoods Home

No comments:


Jeremiah 6:16
Thus saith the LORD, Stand ye in the ways, and see, and ask for the old paths, where is the good way, and walk therein, and ye shall find rest for your souls.

Blog Archive