I received a wonderful and fitting gift after my Economic Fallacies talk at the Branchville, AL, Worldview Conference last Saturday. I had included a PowerPoint slide exhibiting the fiat dollar’s loss of value since the creation of the Federal Reserve in 1913. The loss has been about 95% over the past century ($1.50 in 1913 bought what $100 buys today!). Here’s the Chart:
After my talk, a guy named Joshua Peiffer came up, chatting, and gave me a thoughtful gift: a silver dollar. But not just any silver dollar, a custom-minted “End the Fed” 1-oz silver coin. It was great! The coin, which you also can get, exhibits an “End the Fed” design on one side with the Fed’s logo crossed-out, and on the reverse… the very same chart (above) I used in my talk! It was a great match, a fun moment.
I later talked with Josh a bit more and was pleased to learn of his dedication to God and family and honest money. I love seeing creative efforts like his “End the Fed” coin project and love to see outlets like this used to spread the word about honest money and limited, decentralized government. Due to minting premiums, the coin costs a little more than the spot price of silver, but the message it helps you pass on is worth that and much more. A big thank you to Josh for the little gift and the effort. Hope it helps spread the truth.
Joel McDurmon, M.Div., Reformed Episcopal Theological Seminary, is the Director of Research for American Vision. He has authored four books and also serves as a lecturer and regular contributor to the American Vision website. He joined American Vision's staff in the June of 2008. Joel and his wife and four sons live in Dallas, Georgia.
Your Dollar is worth more today, not less, than in 1913. Certainly not 95% less, basic math. You can't focus on side of the equation and ignore the other side which is the fact that there are alot more Dollars available today, alot easier to come by. People make ALOT more dollars today than they did in 1913
Perfect example of a public school education!
You’re exactly right, Cromwell. There are more Dollars now than there was in 1913. What you miss understand is the rule of rarity. Why is a Ruby so valuable? Is it for it’s density/hardness? Certainly not, for a diamond is harder. Is it for its beauty? No, sapphires are prettier. Is it because the are so many Rubies that they are more valuable? No, of course not, Rubies aren’t valuable because they are easy to get your hands on. They are valuable because there aren’t many in the world. They are rare. Value is determined by rarity. As they increase the amount of dollars, the Dollar is less rare, and therefore, less valuable.
Let me give you another example? Why are Diamonds so valuable? They aren’t rare, they are found in great quantities in certain areas of the earth. They are valuable because one company has monopolized the market. This company has taken control of the magority of Diamonds in the market place, thereby making them rare.
You see rarity determinds value. Not avalibility.
Well, I got my ETF coin, and I LOVE it. Great job, Josh & Isaac!
Bill Greene http://www.ConstitutionalTender.com/