In talking with several people about investing and the economy, it seems that by and large people aren’t really aware of what kind of shape our dollar is in. This is a very short post that I want to use a very telling chart to show what has happened to our dollar since 1913 when the Federal Reserve was created. The chart speaks for itself and concludes visually that in 97 years on the job, the Fed has eroded the value of the dollar by 97%!! That means that todays dollar is only worth about $.03 compared to 1913. Put another way, you can buy less and less per dollar as time goes on. The chart tells the whole story.
This chart actually stops in 2009 so it only shows its decline to 4.6 cents of purchasing power. Still goes to show that any savings that you maintain in cash will eventually purchase you what the dollar is worth…NOTHING!