Young Research & Publishing Inc.

Investment Research Since 1978

Disclosure

  • About Us
    • Contributors
    • Archives
    • Dick Young’s Safe America
    • The Final Richard C. Young’s Intelligence Report
    • You’ve Read The Last Issue of Intelligence Report, Now What?
    • Dick Young’s Research Key: Anecdotal Evidence Gathering
    • Crisis at Vanguard
  • Investment Analysis
    • Bonds
    • Currencies and Gold
    • Dividend Investing
    • ETFs & Funds
    • Investment Strategy
    • Retirement Investing
    • Stocks
    • The Efficient Frontier
  • Investment Counsel
  • Retirement Compounders®
  • Free Email Signup

100 Years of the Fed and All I Got Was this Lousy Dollar

December 26, 2013 By Young Research

Monday was the centennial of the Federal Reserve. Established in 1913 as a lender of last resort, the Federal Reserve has taken on more and more responsibilities over time. Today it is expected to stabilize the value of the dollar (which it has failed miserably to do, with exceptionally bad performance noted during the 1970s), promote growth, produce full employment (ostensibly by ignoring the value of the dollar), regulate banks, manage asset bubbles (though the Fed seems better at creating them), and to communicate all of this with a stream of speeches, press conferences and articles seemingly written to confuse the hell out of the American public.

Take a look at the chart below of the value of the dollar since 1913. As you can see, the Fed’s goal of price stability is nowhere in sight. Today’s dollar is worth a mere $0.043 in 1913 terms. In reverse that means a 1913 dollar today would be worth $23.31. That’s enough to buy a decent sit-down lunch in most cities in America. Today’s dollar wouldn’t even cover the tip!

Trend growth has declined, labor force participation seems to be on a permanent retreat, bank regulation doesn’t seem to be any more efficient or effective than it’s ever been (perhaps it’s worse), and the Fed appears to be inflating a bubble in the stock market without any heed to warnings of its existence. Of its major stated goals and obligations the Fed doesn’t seem to have achieved any. Here’s to another 100 years!

the plight of the dollar

Share this:

  • Email
  • Twitter
  • Facebook

You Might Also Like:

  • This is What Terrorizes the Fed
  • A Failed Fed Tightening
  • Is the Fed the Biggest Risk to the Economy?
  • Author
  • Recent Posts
Young Research
Latest posts by Young Research (see all)
  • Happy Memorial Day! - May 29, 2023
  • While America Cuts Out Coal, China Digs Faster - April 13, 2023
  • Happy Easter! - April 7, 2023

Search Young Research

Most Popular

  • Your Survival Guy Felt Like a U.N. Worker in Rome
  • The Mania in AI Stocks Has Arrived
  • Money Market Assets Hit Record High: $5.4 Trillion
  • Your Survival Guy in Rome 30-Years A.B. (After Babson)
  • The Future of the American City is This…
  • Vanguard Wellesley (VWINX) vs. Wellington (VWELX): Which Fund is Best?
  • A Three-Week International Research Trip to Paris via Rome
  • Is an Investment Property Disaster Looming?
  • The Power of a Compound Interest Table
  • Letter to the Federal Reserve Chairman from Your Survival Guy

Don’t Miss

Default Risk Among the Many Concerns with Annuities

Risk and Reward: An Efficient Frontier

How to be a Billionaire: Proven Strategies from the Titans of Wealth

Cryptocosm and Life After Google

Warning: Avoid Mutual Fund Year End Distributions

Is Gold a Good Long-term Investment?

How to Invest in Gold

Vanguard Wellington (VWELX): The Original Balanced Fund

What is the Best Gold ETF for Investing and Trading?

Procter & Gamble (PG) Stock: The Only True Dividend King

The Dividend King of the North

You’ll Love This if You’re Dreaming of an Active Retirement Life

The Importance of a Balanced Portfolio

Invest with Peace of Mind and Comfort

What Kind of Life Are You Investing For?

RSS The Latest at Richardcyoung.com

  • Rewarding Loyalty with Ridicule
  • Rome, Paris, U.S.A.: Global Crisis in Confidence
  • June Is Retirement Compounders Month
  • Americans Scared of CBDC Control of Their Money
  • Your Survival Guy’s Best Insider’s Guide to Rome
  • Auto Profitability Colliding with Low Emissions
  • Birth Rates in France Worst Since Post-WWII Era
  • What Binds the Woke Left Together?
  • Joel Salatin and Alfie Oakes, America’s Food Kings
  • The Party Is Going Off the Rails

RSS The Latest at Yoursurvivalguy.com

  • Rome, Paris, U.S.A.: Global Crisis in Confidence
  • Your Survival Guy’s Best Insider’s Guide to Rome
  • What Is a Fiduciary Duty? Are You Working with a Fiduciary?
  • Survive and Thrive June 2023: Your Survival Guy in Rome 30-Years A.B. (After Babson)
  • Birth Rates in France Worst Since Post-WWII Era
  • Your Survival Guy Felt Like a U.N. Worker in Rome
  • Social Security: Declining Italy Needs a Bambino Boom
  • ATTACK ON THE IVAN KHURS: Unmanned Vessels Changing Naval Warfare
  • The Future of the American City is This…
  • Happy Memorial Day: Your Survival Guy: Proud To Be an American

About Us

  • About Young Research
  • Archives
  • Contributors

Our Partners

  • Richard C. Young & Co.
  • Richardcyoung.com

Copyright © 2023 | Terms & Conditions

 

Loading Comments...
 

    loading Cancel
    Post was not sent - check your email addresses!
    Email check failed, please try again
    Sorry, your blog cannot share posts by email.