As the Fed Turns 109 Years Old, the US Dollar's Purchasing Power Eroded by More Than 96% Since It Was Created.

26 Dec 2022, 08:00

As the Fed Turns 109 Years Old, the US Dollar’s Purchasing Power Eroded by More Than 96% Since It Was Created 109 years ago, the U.S. Federal Reserve was created and ever since that day, the purchasing power of the U.S. dollar has dropped a great deal. Since the Fed started, more than 96% of the greenback’s purchasing power has been erased via inflation. The Purchasing Power of the U.S. Dollar After the Creation of the Federal Reserve on Dec. 24, 1913 Dwindles LowerDuring the last hundred years, economists have blamed the U.S. Federal Reserve for a great deal of America’s rising inflation. American economist and social theorist Thomas Sowell referred to the Fed as a “cancer,” and former politcians like Ron Paul have called on the masses to abolish the Fed. Prior to the creation of the Fed on Dec. 23, 1913, America had two central banks the preceded the current U.S. central bank. The first U.S. central bank started in 1791 which was the First Bank of the United States, a financial institution charted by Congress at the time. The second attempt to create a central bank in America was in 1816 with the formation of the Second Bank of the United States. The third central bank is the current financial institution we know of today called the Federal Reserve and it was officially created 109 years ago just before Christmas Eve.