The incredible shrinking dollar

“And I sincerely believe, with you, that banking establishments are more dangerous than standing armies; and that the principle of spending money to be paid by posterity, under the name of funding, is but swindling futurity on a large scale.”
Thomas Jefferson, to John Taylor, 1816

The history of America is paradoxical — while the ‘blessings of liberty,’ over time, have been offered to previously excluded groups, at the same time the nation has steadily eroded the basic principles those blessings were anchored in. I’ll leave aside the diminishment of Christian faith (this time…) for now. Instead, consider the threats in the quote above. America eventually lost its aversion both to centralized power (political and economic), and to standing armies. It took a while, even after the States were brought to heel in 1865. But by 1913, an enormous shift toward consolidating power on the Potomac was well under way. And by 1950, with the threat of a “Cold War,” the nation reconciled itself to a large standing military.

As a result, Federal spending exploded with nuclear force, with the Federal Reserve its chief enabler. And, as Jefferson predicted, we have ‘swindled futurity on a large scale:’

In other words, the value of the dollar remained extremely stable for 150 years, the Fed was created in order to “stabilize the value of the dollar,” and the result has been a 95% devaluation of the dollar in less than 100 years following its creation…

The Federal Reserve System is fraudulent. Whatever its stated purpose, its effect is to create a hidden mechanism of deficit spending by politicians, through the insidious invisible taxation of monetary debasement (inflation). With printed money, the Government can buy services for its voters before the effects of inflation are felt. The voters’ money buys less the following year, as the new money has raised prices, and they are often none the wiser.

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