They say you can’t take it with you, but you might as well use it to insulate your casket. That’s all it will be worth.
When hyperinflation hit Germany, before World War II it took a wheel barrow full of money to buy a loaf of bread – $4.6 million to be exact. From 1922 to November 1923 a loaf of bread went from 163 Marks to 200,000,000,000. The Weimar government printed too much money (Marks) in their effort to pay reparations after the French invasion in 1923. This was one of three key elements which caused their monetary value to collapse. The money was so worthless, it was cheaper to burn the money than to buy coal or heating oil for fuel.
In 2021 the US inflation rate rose by 6.8%. In November 2021 alone, gasoline prices rose 58.1%. We’re seeing the biggest increases since 1980. Of course this just adds to a problem we’ve been having for years.
Did you know that there are already 3 million people who have signed a petition to get another round of stimulus payments? And that was back at the beginning of January, so I’m sure there must be more now. Over 3 million people who have not a clue why the cost of everything they buy is going up. As US debt climbs to over $30 Trillion, the bobble-heads in Washington DC seem to think this can go on forever with no consequence. Or do they? Is this spending reckless or planned?
| Year | Event | Purchasing Power of $1 | What a Dollar Buys |
|---|---|---|---|
| 1913 | Creation of the Federal Reserve System | $26.14 | 30 Hershey’s chocolate bars |
| 1929 | Stock market crash | $15.14 | 10 rolls of toilet paper |
| 1933 | Gold possession criminalized | $19.91 | 10 bottles of beer |
| 1944 | Bretton Woods agreement | $14.71 | 20 bottles of Coca-Cola |
| 1953 | End of the Korean War | $9.69 | 10 bags of pretzels |
| 1964 | Escalation of the Vietnam War | $8.35 | 1 drive-in movie ticket |
| 1971 | End of the gold standard | $6.39 | 17 oranges |
| 1987 | “Black Monday” stock market crash | $2.28 | 2 boxes of crayons |
| 1997 | Asian financial crisis | $1.61 | 4 grapefruits |
| 2008 | Global Financial crisis | $1.20 | 2 |
In 1834, upon the passing of the Gold Standard Act, the US fixed the price of gold at $20.67 per ounce. The Federal Reserve was created in 1913 to “stabilize gold and currency values” in the US. The United States came off the gold standard June 5, 1933. Between 1913 at the creation of the Fed and 2008, the US dollar has lost 95.41% of its value.
As more dollars are printed and put in circulation, they lower the value of the concept they represent. I say concept because they are only backed by the “Full Faith and Credit of the United States.” Consider for a moment your “Full Faith and Credit” if you had maxed out more dollars than you could create in income over an 8 1/2 year period. In 2019, the US collected $3.5 trillion in revenue. In 2021, the U.S. Government collected $4.05 trillion and spent $6.82 trillion. In 2020, the U.S. national debt hit 100% of Gross Domestic Product (GDP) for the first time since World War II. Current Debt to GDP Ratio is 138.24%. Between 1965 and 1990 the national debt was 40% or less of GDP. With no standard upon which it is based, and a credit which has been way overextended, how much Faith and Credit does the U.S. Dollar have left?
Purchasing Power of $100 over time.
1913: $100
1923: $57.89
1933: $76.15
1943: $57.23
1953: $37.08
1963: $32.35
1973: $22.30
1983: $9.94
1993: $6.85
2003: $5.38
2013: $4.25
2019: $3.87
So, why is it that no one in Washington D.C., or even the media for that matter, seems to be concerned about the U.S. debt? Why do they think we can just keep printing money, spending like there is no tomorrow? Maybe, it is because they know if they crash the dollar, they can more easily force their citizens to use digital currency which they can easily monitor and control.
https://www.pcmag.com/news/can-cryptocurrency-replace-the-us-dollar
https://time.com/6099105/us-china-digital-currency-central-bank/
Others think this isn’t a possibility
Whether there is a possibility the U.S. Dollar collapses or not, there is no denying that its value is declining. Unless the U.S. gets a handle on its debt, the dollar will continue to lose value. It’s time for us as citizens to start making the honest decisions necessary to give our money back its value.
