Special offer

Preserving the Value of a Dollar by the Federal Reserve, A Miserable Failure

By
Real Estate Agent with Atlanta Communities Real Estate Brokerage GREC #208281

I'll make it simple.

A dollar in 1913 is only worth 5 cents today.  1913 is the year that the Federal Reserve was created with the mission to maximize sustainable employment and stable prices. That's a pretty terrible result.

How did the dollar do going back the same amount of years before the Federal Reserve?   

A dollar in 1818 grew in value to be worth $1.28 in 1913.  That means that the value of a dollar actually gained purchasing power during the years when we actually had a free market and no central bank led by so called experts on the economy. 

It kind of reminds me of the Soviet Union.  They started in 1919 and many believed that a centrally planned economy would be so much better than one that relied on the free market.  Many were deceived by the propaganda that the Soviet Union was doing so well.  But finally thier controlled system collaspsed in 1989.  The grand experiment with a controlled economy failed miserbly.

Many have accepted inflation as normal as the sun rising in the morning.  It's now become accepted that inflation is good. 

But isn't increased productivity supposed to bring prices down?  Is it a bad thing that computers and phones are so cheap now?

Do you really want to be forced to be a speculator just in order to keep from having the value of your money rot away?

Money was created so people could have a store of value.  If someone produced eggs, they didn't have to stockpile eggs and see them spoil with time.  They could trade in their eggs for gold which would last forever.  It seems to me that our basket of dollars is not much better than a basket of rotten eggs.

Ben Bernanke just got reconfirmed for another term as Chairman of the Federal Reserve.  There was a lot of debate about whether he did a good job or not. I think this video pretty much sums up how much faith one should put on the predictions of Bernanke.

 

It's not really who you put at the helm, it's the system itself. 

Peter Schiff was a lot better at seeing what was happening with housing and the economy.

Here he is trying to educate people about the history of money and the Federal Reserve and calling for the end of the Fed.  He's actually running for Senator in Connecticutt.  The series of videos is well worth watching.  Without knowing what the crux of the problem is, there's no way we will be able to solve the situation without a crisis and collapse of the system.

 

 

 

 

 

Posted by

 

 

About the Author:  Tim Maitski has been a full time Realtor since 1999. He has sold several hundreds of homes in areas around metro Atlanta.  Tim started with RE/MAX Greater Atlanta and is now with Atlanta Communities Real Estate Brokerage.

 

Along with blogging on ActiveRain, he provides one of the best real estate websites in Atlanta at www.HomeAtlanta.com .

 

His proprietary  "Maitski Line Reports" chart out the absorption rates over the past 14 years in 37 different market areas.  Know when it's a good time to buy or a good time to sell.    

 

His online Property Tax Calculator allows you to compare property taxes in many counties and cities around the Atlanta area.  He provides the Atlanta MLS Power Search Tool that allows searches of homes using over 35 specific criteria.

 

Over the years, Tim has optimized his business so that he now can offer a huge 50% commission rebate to his buyers.  The more experience one gets, the easier the job becomes.

 

Tim also has a "Five Days to Sold" System that uses an intensive marketing blitz to create a showing frenzy that creates urgency and offers.

 

Tim is always looking to LinkIn with anyone who is interested in building their social network.

 

View Tim Maitski ●Atlanta Realtor●'s profile on LinkedIn

Comments (1)

John Mulkey
TheHousingGuru.com - Waleska, GA
Housing Guru

Tim - By confirming Bernanke, our "leaders" have demonstrated their lack of understanding or our problems. I expect little to change unless we have a dramatic change of the faces in Congress.  We'll see.

Jan 29, 2010 12:31 AM