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Forum Post: The dollar has lost 42% of its value since 1985

Posted 8 years ago on Nov. 6, 2011, 9:21 a.m. EST by aquainted (268)
This content is user submitted and not an official statement

That means we now got about 1/4 of what we should have because the dollar would have gained in value under competent economic leadership.

This is mostly due to the wonderful leadership of the Federal Reserve.

So exactly how are we going to get rid of this useless group of incompetent thieves without disturbing our lives too much?

70 Comments

70 Comments


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[-] 1 points by SparkyJP (1646) from Westminster, MD 8 years ago

In 1913 (the year the fed reserve was enacted) the value of the dollar was $3.36. That means you could buy $3.36 of goods or services for your $1. In 2010, the value of the dollar has dropped to $0.153. THAT'S POINT 153!! - However the fed claims inflation is under control. WTF?

http://mykindred.com/cloud/TX/Documents/dollar/

[Removed]

[-] 1 points by TheCloser (200) 8 years ago

I think you're just noticing inflation. Since the beginning of the existence of the $ it's purchasing power has been cut in half every 15 years. Things get more expensive, except for things like petrol were you yanks have suppressed the cost to unreasonably low levels - UK is 7 per liter.

[-] 1 points by aquainted (268) 8 years ago

Venezuela is about 13 cents a gallon!

That 's the difference between the Illuminati Rockefellers and A leader of the people.

[-] 1 points by TheCloser (200) 8 years ago

Venezuela does not import any oil and their Gov't underwrites the costs - it's a tax payer initiative to offset the costs. It sure works for them.

[-] 1 points by sfsteve (151) 8 years ago

The national debt is comprised of two things. The first is government debt, this comes when a treasury note is created by the treasury and is sold to the fed or private investors. The second is consumer debt, this is fiat money created by banks to fund loans. The two of these combine to be the sum of all US dollars either in the form of currency or treasury notes.

That is just it. The national debt is a number that tells us just how much US dollars are out there. The larger the number is, relative to the equivalent number of other countries, the lower is the value of the dollar.

The government can stop or reverse this using tax policy. Raising the ratio of taxes to spending, relative to other countries, leads to steady strengthening of the dollar.

The government also limits consumer debt through financial regulation.

Big banks can also act to slow the national debt and strengthen the dollar. They have no say over government spending, or taxation, but they do have say over consumer spending and consumer interest rates. They can quit loaning money, and they can raise rates. They are doing both. Right when the economy really needs investments to spur grow and money to create demand, they have stopped lending money and are hitting credit card holders and mortgage holders with increasing rates.

Why is it in the interests of big banks to not lend? Because right now the bankers hold so much of the nation's wealth, the loss of the value of the dollar by adding to the debt would out weigh the potential benefit of the loans themselves. Especially when interest rates are at historical lows. This interest is evident in the talk of austerity. Their interest is to strengthen the dollar without raising taxes.

I say screw the value of the dollar. Get some more out there right now. Build everything. Everything we will need to be the greatest country on Earth for the next 100 years. For starters we need high speed rail. I read somewhere about a brand new electrical grid and fuel pipeline that delivers electricity along super conducting wires cooled by liquid hydrogen. What happened to our interest in space? We need several new observational satellites like Hubble, a US space station, and an army of robotic exploration vehicles on Mars. We need to replace coal with natural gas, and to replace natural gas with wind, solar, geothermal, tidal, and hydraulic wherever possible. Just print the money and give a guy a job.

[-] 1 points by davisstraub (52) 8 years ago

I notice that a dollar buys a lot more computing power in 2011 than it did in 1985.

[-] 1 points by sfsteve (151) 8 years ago

If you want the value of the dollar to go up raise taxes. It is just that simple. When there are less dollars in circulation their relative value goes up. The government does not tax to fund spending, they fund spending by issuing treasury bills and selling them to either the fed or private investors. The dollars paid for the treasuries goes into circulation. This increased inflation and lowers the relative value of the dollar. They tax to remove dollars from circulation and thus to lower inflation and increase the relative value of the dollar.

It is a basic principle of macro economics.

[-] 0 points by aquainted (268) 8 years ago

That maybe true, but we don't want taxes either. The people want the dollar strong and valuable and well backed by good labor, gold, natural resources, god leadership, strong defense, good foreign policy. The people would back the dollar and stay proud and lower taxes.

Right now most taxes go to the debt which goes to the fed, which goes to super wealthy families who further subvert us. We are paying them trillions now to subvert us. This is like paying a drug pusher.

[-] 1 points by tehm (32) from Knoxville, TN 8 years ago

Who said we don't want taxes? the top 1% have more wealth than the bottom 90% have combined. There is no time in history when the wealth disparity has been as great as it has been now. The two closest times, however, were the month before the crash of 08 and the month prior to the start of "The Great Depression".

The single fastest way to fix that would be to do a one time tax of the wealth of the top 1%. We could litterally pay off the national debt and start saving our government (that's you and me the tax payers) hundreds of BILLIONS of dollars a year in debt servicing starting tomorrow.

[-] 0 points by aquainted (268) 8 years ago

Yes, tax the rich, stop the wars, release free energy. That would set a lot straight again.

[-] 1 points by sfsteve (151) 8 years ago

The interest the fed collects, their profit, is largely returned to the US government. I read it was something like 98% of the interest they collect is returned. The fed shareholders are not getting rich off their fed shares, they are getting rich off of fed policies designed to fuel bubbles.

[-] 0 points by aquainted (268) 8 years ago

Oh you read that, huh, have you completely lost your mind?

[-] 1 points by sfsteve (151) 8 years ago

I'm not a fan of the fed in any way. But I do believe that they return most of their profit. The interest charged by the fed is the most obvious critique of the fed. Of course they would give back the interest, just to look on the up and up.

By giving back the interest they obscure the real reason people should be wary of the fed. They control monetary policy and they are not subject to any meaningful oversight. They can manipulate markets to create bubbles that could be exploited by the companies that are the majority holders of fed stock. I do not know if they are doing this, but the way it is set up there really is no way of knowing. I saw somewhere that a study revealed several conflicts of interest between members of the fed's board and banks the fed was charged with regulating.

If the fed was subject to public scrutiny, if all their shareholders were identified and their meetings were on c-span, then I might be okay with the fed. Until then, I do not trust them. But it is not because they charge interest.

[-] 1 points by aquainted (268) 8 years ago

Exactly, the American People are absolutely crazy to allow a private company of loan sharks to manage their entire country.

The American People are the stupidest group of individuals ever assembled.

[-] 1 points by sfsteve (151) 8 years ago

Ha ha ha, sad but true.

[-] 1 points by MattLHolck (16833) from San Diego, CA 8 years ago

Inflation

[-] 1 points by number2 (914) 8 years ago

that on par with the rise of prices at the grocery store, gas station and elsewhere.

[-] 1 points by technoviking (484) 8 years ago

the dollar's status as a world reserve currency has made foreign governments and investors around the world bid up the the price of the dollar in order to get their hands on the 'safest asset in the world'.

it's way too expensive. it's allowed us to buy chinese goods for so cheap for so long. it should never have been the case.

it has made products made in america too expensive for foreigners to buy.

the dollar is both our greatest strength and greatest weakness.

it's time to give up the global currency sovereignty.

[-] 1 points by stevemiller (1062) 8 years ago

Americans ignore the insanity and incompetence of the government

read more -- http://overthecoals.blogspot.com/

Let's begin with the budget and the squandering of trillions of dollars on more and more weapons. Only raving maniacs would create the American foreign policy and defense policy. Americans do it with a straight face as if they were sophisticated and educated people.

The economists and bankers in America have created policies that allow and promote wild gambling with derivatives that they claim are complex as if they worked. They worked to destroy the banking system and put 50,000,000 Americans out of work with the globalization policy that is nothing more than simple slavery of Chinese workers. That slavery is hidden behind the bogus claim that China's currency is too strong. If China allowed its currency to rise in value to the dollar, the US debt they own $1.137 trillion (the same as it was in August 2010) would be paid back with half of what they loaned.

The Chinese government isn't stupid. They aren't going to take half of what they loaned. The American people are completely uninformed nitwits who have no clue that the government they believe can't be voted out of office with a 3rd party, would be gone if they heard what SCREWED AGAIN is trying to publish for them.

The ignorance and incompetence of the American government is displayed by the liars that divert attention to 9/11 every day. The American people refuse to hear about and understand the evidence that proves clearly the 9/11 was a direct attack by Bush who was warned officially more than 40 times and chose to use the Al-Qaeda attack as a false flag for the incidents revealed by SCREWED AGAIN.

[-] 0 points by happybanker (766) 8 years ago

Still at it I see. No one cares about how you raked yourself over the coals. Give it up, Steve. You have been outed as a moron that wants to be a politician. Go away you pathetic loser.

[-] 0 points by stevemiller (1062) 8 years ago

The safest asset? You are delusional. America is a bottomless pit of propaganda crap.

A budget that is crazy seems to go unnoticed here by the OWS PEOPLE.

OWS people are as uninformed as the rest of America.

[-] 1 points by technoviking (484) 8 years ago

foreigners don't really get many opportunities to listen to american propaganda, they just buy american dollars anyway.

it has to be the only reason why the value of american debt went UP when american debt was downgraded

[-] 0 points by stevemiller (1062) 8 years ago

The posts are on my blog. That's why I put the link on here.

[-] 0 points by stevemiller (1062) 8 years ago

You have no clue. Do you trade treasuries? I've traded treasuries since 1979.

Tell me all about it. But maybe you should read my posts about PIMCO before you begin to make clueless comments about "the only reason".

[-] 1 points by technoviking (484) 8 years ago

i suspect you have no clue either.

words are easy to bandy around.

i'm in fi derivs in hk.

[-] 1 points by stevemiller (1062) 8 years ago

Taught by the assholes who never saw the mortgage bubble. You are a sheep wasting money on courses from gross incompetence. Slow down and read my posts on the PIMCO case.

Please don't send me any more messages until you study the posts on my blog. I won't answer any.

[-] 1 points by barb (835) 8 years ago

The dollar is going to be worthless pretty soon to use it in other countries.

[-] 1 points by technoviking (484) 8 years ago

lost 42% of its value against what exactly?

[-] 1 points by stevemiller (1062) 8 years ago

Against its buying power. When you need $100 to buy the same item that cost $50 the dollar lost 50% of its value.

Can it get more simple?

When Bernanke prints $600 billion to buy the debt as was the QE2 plan, the value immediately dropped and the cost of every commodity traded skyrocketed. They couldn't pass those prices to the consumer meaning that businesses dealing in those commodities had to eat the price rise.

[-] 1 points by technoviking (484) 8 years ago

houses look cheaper than 5 years ago.

[-] 1 points by stevemiller (1062) 8 years ago

The false bubble busted. Did the value of the dollar increase to make house prices collapse.

That is an incoherent, uninformed observation. Do you want facts or fairy tales. I never tell fairy tales. This isn't nursery school. Read my blog. Its why I put the link in the post.

[-] 1 points by aquainted (268) 8 years ago

Against what it use to be. Inflation has been occurring because the currency has been gradually deflated by poor management and horrific debt. Debt is encourage by the Federal Reserve which is, of course, a private bank of rich families that make their money off putting us into debt.

Right now most Federal income tax goes to these rich families who will not allow Ron Lawl's audit. This is a crime, according to our constitution. We need to occupy the Fed. Read Ellen Brown's book. Too clear on this.

http://www.webofdebt.com/

[-] 0 points by stevemiller (1062) 8 years ago

Gradually? You have no clue. The money supply went through the roof but the velocity declined which hid the skyrocket.

I go by facts from the treasury and fed, not by an asshole reporter who is spewing out bogus reports that you bought hook line and sinker.

Read my blog. Maybe you'll agree that I know what I'm writing about.

Americans ignore the insanity and incompetence of the government

read more -- http://overthecoals.blogspot.com/

Let's begin with the budget and the squandering of trillions of dollars on more and more weapons. Only raving maniacs would create the American foreign policy and defense policy. Americans do it with a straight face as if they were sophisticated and educated people.

The economists and bankers in America have created policies that allow and promote wild gambling with derivatives that they claim are complex as if they worked. They worked to destroy the banking system and put 50,000,000 Americans out of work with the globalization policy that is nothing more than simple slavery of Chinese workers. That slavery is hidden behind the bogus claim that China's currency is too strong. If China allowed its currency to rise in value to the dollar, the US debt they own $1.137 trillion (the same as it was in August 2010) would be paid back with half of what they loaned.

The Chinese government isn't stupid. They aren't going to take half of what they loaned. The American people are completely uninformed nitwits who have no clue that the government they believe can't be voted out of office with a 3rd party, would be gone if they heard what SCREWED AGAIN is trying to publish for them.

The ignorance and incompetence of the American government is displayed by the liars that divert attention to 9/11 every day. The American people refuse to hear about and understand the evidence that proves clearly the 9/11 was a direct attack by Bush who was warned officially more than 40 times and chose to use the Al-Qaeda attack as a false flag for the incidents revealed by SCREWED AGAIN.

[-] 0 points by aquainted (268) 8 years ago

We were talking about gradual currency loss; not money supply. And the Fed would be the last place to find reliable information, in my view as they are running the scam. Derivative gamblers are planted by the Illuminati to ruin the economy and return property to the banks who will then sell for great profit to the Chinese.

This is all another boom and bust scam from the Illuminati. They extend credit; then they quickly withdraw it to knock down prices. They buy up what they want for pennies on the dollar and then sell it to the highest bidder. They do this every 20 years like clock work.

[-] 1 points by stevemiller (1062) 8 years ago

Too bad you are uneducated. I can't help that.

You are too arrogant to learn from a pro. The illuminati? now I see you delusional. I don't communicate with delusional people. Bye forever.

[-] 0 points by aquainted (268) 8 years ago

Good, get lost, finally

[-] 1 points by rayl (1007) 8 years ago

against other world currencies.

[-] 1 points by cmt (1195) from Tolland, CT 8 years ago

Purchasing power of dollar. I haven't checked his figures, but am just explaining the theory.

Inflation erodes the buying power of money. As a result, the same number can mean different things at different times. After WWI, $10,000 a year was a wage a family could live on.

[-] 1 points by stevemiller (1062) 8 years ago

Printing money (trillions) destroys the value of money. Erode is usually a small crevice. It is the wrong word to describe destruction.

[-] 0 points by aquainted (268) 8 years ago

Simply put: one dollar is now worth 58 cents, when it could have been worth a 1.30 under proper leadership. We have lost a whole dollar for each dollar we now control.

This is not all the losses we have incurred by any means, taxes have gone up too, so we lose and lose and lose with these guys.

My home is down 300 thousand in five years, for example

[-] 1 points by technoviking (484) 8 years ago

that means you used to be able to buy a house five years ago, but now you would be able to buy a house and have $300,000 left over?

that sounds like your money has increased in value.

[-] 0 points by aquainted (268) 8 years ago

Not if you are the house owner. You are the loser for trusting your government to uphold the markets.

[-] 1 points by technoviking (484) 8 years ago

i don't understand? how can the value of $1 go up for one person and go down for another person?

[-] 0 points by aquainted (268) 8 years ago

It cannot. When markets fall they fall faster than the slowly diminishing value of the dollar.

[-] 1 points by technoviking (484) 8 years ago

so the markets and the dollar value can move in opposite directions?

they are unrelated events?

[-] 0 points by aquainted (268) 8 years ago

No, not opposite, different rates of decline. Gold may go up against the decline, but not necessarily, and certainly not all the time.

[-] 0 points by LetsGetTheFactsStraight (30) 8 years ago

Visit LetsGetTheFactsStraight.com

[-] 0 points by owschico (295) 8 years ago

End the forced monopoly on money the fed has, if you allow competing forms of money the fed will go away in time

[-] 0 points by aquainted (268) 8 years ago

Yes, as Rothschild said: I care not who writes the laws if I control the credit.

Money ultimately steers everything into the ditch, unless the people themselves control it directly. Then the banks can come and bribe us with lobbyists.

[-] 0 points by owschico (295) 8 years ago

Permit me to issue and control the money of a nation, and I care not who makes its laws. Mayer Amschel Rothschild

[-] 0 points by aquainted (268) 8 years ago

thank you

[-] 0 points by VladimirMayakovsky (796) 8 years ago

If the dollar was stronger Americans would have even less jobs as the Chinese wages would look even lower in dollar terms. Like I have said many times before, be careful what you wish for (strong dollar, high wages) because you may get them and have no jobs left in the USA.

[-] 0 points by aquainted (268) 8 years ago

With a stronger dollar we could buy more with less and would not need the high paying job. We work less and have more. That's good.

[-] 0 points by Thrasymaque (-2138) 8 years ago

300 hundred years ago, the Portuguese were buying nutmeg in the Maluku islands of Indonesia and selling it at a price 60,000 times more expensive back in Portugal. If the American dollar is loosing in value vis-à-vis other world currencies, it simply means the world is becoming more equitable. That's a good thing no? Isn't fairness one of the staples of OWS?

[-] 0 points by aquainted (268) 8 years ago

If they got it for a penny, they sold if for 600 dollars after traveling around the world and risking their lives. Nothing wrong with that.

Money is a symbol for energy and intelligence and value. The money was traded for real work and should not lose its value. Other countries should not be screwed either. OWS is for fairness towards all workers and that includes dumping currency manipulators and destroyers.

[-] 0 points by Thrasymaque (-2138) 8 years ago

It's not so simple. A 60,000 times increase is really big. Really really big. True, they risked their lives traveling the seas. However, that is not the reason they could buy nutmeg for such a low price. The reason is Indonesians had no clue as to the selling price in Portugal. Nowadays, people know better than to sell for such low prices.

If money is a symbol for energy, intelligence, and value, then perhaps the energy, intelligence, and value of Americans has diminished in the last decades making the dollar fall in worth.

[-] 0 points by aquainted (268) 8 years ago

If the Indonesians didn't like the deal, they would not have sold it. Their loss for not checking. Maybe the ports lied to them which is wrong.

On the second point you are right, Americans are getting dumber by the minute. And this does reduce their currency, but the NWO has corrupted education and poisoned the public also. Complex problem here.

[-] 0 points by Thrasymaque (-2138) 8 years ago

Indonesians didn't understand the deal, and they could not check it because they had never gone to Portugal themselves. It's also important to note that the Portuguese essentially took control of the Maluku islands, and even if the Indonesians had wanted a higher price they would not have received it since they were selling nutmeg with a gun in their faces.

Who are the people in the NWO? Can you give me four or five names so I can do some research. The most important leaders.

[-] 0 points by aquainted (268) 8 years ago

Sounds like Indonesians got screwed then, but it is the 1% who use them not the OWS.

As for the top 5 in the NWO, I wish I knew. They are a cabal that operates through the visible government.

[-] 0 points by Thrasymaque (-2138) 8 years ago

If nobody can name them, it's probably because they don't exist.

[-] 0 points by aquainted (268) 8 years ago

but there is plenty of evidence that they do exist and are running the show.

Belief in the Illuminati has soared over the last decade. Circumstantial evidence is mounting, not diminishing.

[-] 0 points by Thrasymaque (-2138) 8 years ago

If there was that much evidence, there would be leads that indicate who they are. The reason circumstantial evidence seems to be mounting is because conspiracy theories have become an Internet phenomenon and are used to sell books and make a lot of money. Until there is real evidence, we should assume the NWO and the Illuminati do not exist. Conspiracy theories are a mind cancer. You shouldn't give them any weight. Read good books by critical thinkers instead. Circumstantial evidence that Bigfoot exist is also mounting, but there's not Bigfoot in sight. Look for real evidence.

[-] 0 points by aquainted (268) 8 years ago

I disagree. We cannot take the chance on something so terrible. We need to grab hold of this country now and seize the vote. Things look bad when Obama gives trillions to the banks cause they are too big to fail. This is complete bullshit and I am not one for taking chances with the entire country and 350 million futures, are you?

[-] 0 points by Thrasymaque (-2138) 8 years ago

Well how do you know? Just because an idea sound silly to you, doesn't mean it isn't true.

Just because an idea sounds plausible, does not mean it is true. The person raising the idea has the burden of proof. I asked you to name some names, and you cannot. The NWO and Illuminati remain organizations made up of invisible men. As long as that is the case, it is best to ignore them and to find solutions for problems that are real.

[-] 0 points by Thrasymaque (-2138) 8 years ago

We certainly have to take control and vote. However, that's not because of some fictitious NWO, but because of real problems in the system which have been identified. Going after some invisible men that you believe form the NWO is a complete waste of time.

[-] 0 points by aquainted (268) 8 years ago

Well how do you know? Just because an idea sound silly to you, doesn't mean it isn't true.