Hasn't the Federal Reserve done a great job?

Discussion in 'Financial Cents' started by Jonas Parker, Dec 15, 2007.

  1. Jonas Parker

    Jonas Parker Hooligan

    Check this site out:

    If it's right, one dollar in 1929 requires $11.77 today for the same purchasing power, but four 90% silver quarters have a melt value of $10.00.

    Twenty dollars in 1929 requires $235.30 today for the same purchasing power, but a 1929 $20.00 gold piece has a melt value today of $767.32.

    Hasn't the Federal Reserve done a great job?
  2. MbRodge

    MbRodge Monkey+++

    hmmm....so what you're saying is that our purchasing power would have increased if we'd kept a gold or silver standard? Such radical anti-establishment thought should be punished. Who are we to question the federal government? They say they are just trying to take care of us, shouldn't that be good enough?
  3. Evenglischatiest

    Evenglischatiest Monkey+++

    By this calculator, $100.00 in 1789 (when the Constitution went into effect) had the same purchasing power as $110.07 in 1912. By 1920, that same $100.00 (from 1789) had the purchasing power of $234.66.

    For politicians, and others who are mathematically challenged, we had an average annual inflation rate of .078% for the first 123 years under the Constitution. For the next 8 years, (including all of 1913) the average annual inflation rate was 9.5%. That's over 120 times higher. It's certainly calmed down since then. But we're still at an average annual rate of 3.3% from 1912-2006. And that's still over 40 times higher than before 1912.

    I wonder what changed in 1913? [dunno]

    As a side note, everything I see in my life says these numbers are incredibly conservative. I'm 31 years old. My memories for prices start in the early 90's. At that time, a 6-pack of Coke was $0.99, an ice cream cone at Thrifty's (now Rite Aid) was $0.25, and a box of macaroni and cheese was $0.59. Now those same items are $2.79, $0.99, and $2.19 respectively, at the exact same stores, in exactly the same locations. But the calculator says $100.00 in 1990 is worth $154.25 today. It don't add up.
  4. melbo

    melbo Hunter Gatherer Administrator Founding Member

    1913 was the creation of the Federal Reserve. That's what happened.

    Found this today and thought it was interesting
  5. Evenglischatiest

    Evenglischatiest Monkey+++

    No, that couldn't be it.
    The government put the federal reserve in power, so it must be for the better. [booze](we need a Kool-Aide smiley)

    On a more serious note, can anyone give me an actual good reason for a central bank? Seriously. I've looked, but I can't find any. Even the people in favor of it never say why. It seems to be taken entirely on faith that one is necessary.
  6. ozarkgoatman

    ozarkgoatman Resident goat herder

    It's to make a few people really really rich on the tax payers dime.

  7. ChemicalGal

    ChemicalGal Monkey+++

    This is why I worry about Ron Paul so much. He intends to complete these things in his term as President.
    Kennedy was from a rich & powerful family and was loved by most Americans. If they could do this to him, think what Ron Paul faces. He only has us.....yes, he has ignited our Patriotic spirit but without him how long will it last?
    And they are powerful people make no mistake about that. There are people who will do most anything for money, so there will always be a Lee Harvey Oswald to do their dirty work.

    I can only hope that we have truly had enough and start working together to bring us back to the original intent of our founding fathers.

    God help America
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