Purchasing Power of the US Dollar, last 100 years!
While the US Dollar countinues to strengthen in the market versus all, I made this graph to show you, how US Dollar lose his Purchasing Power during the last 100 years. This graph shows that, if you held a One US Dollar bill for the last 100 years, your ‘buying power’ will be 0.05 cents today. The main reason is inflation, which is from 1900’s averaged of 3.0% per year in United States. That means, that prices are going up every year while money loses its value. The Purchasing Power will continue to fall furder during the next period, because yearly inflation must be an average of 2-3% for helth economy and that shows that money worth less year after year. This means that you need to create more and more money to hold your purchasing power at least at the same level. Be aware of that and look forward for more then 1 day, or year!

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This is great Mario.
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Having said that, it is a great graph and a brilliant representation of the depreciation of the Dollar.
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That is a very Austrian School of Economics view. I think one has to look at money as a whole which includes the Dollar as a tool. It is not a store of wealth. It is a toll which acts as the oil in an economy and allows it to run smoothly. The value of money is completely irrelevant. For a healthy economy it is considered that inflation should be around 2% or as Mario Draghi continually says ‘close to by below two percent’. If money ceased to be a tool and became a store of wealth, then events like the Great Depression would repeat themselves time and time again. The recent financial crisis did not develop into a depression primarily because of the action taken by Ben Bernanke and the FED. Other central banks and particularly the ECB are following his cue be it somewhat late. Thus I think one should move away from this notion that money is a store of wealth and view it as a tool which oils the economy.
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Follow a negative rate of purchasing power ?! We will return to barter ?!
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