Federal Debt Relief System, The Declining Dollar
The Declining Dollar and What It Means for You
(NaturalNews) Do you know that since the year 2000, the U.S. dollar has silently depreciated in value against other major currencies by a whopping 52 percent! This depreciation of the dollar goes a long way toward explaining why you feel like you are getting poorer every year even though you make more money.
A Short Dollar History
In earlier times it was readily accepted that fair and honest trade required an exchange for something of real value. First we had the barter system. Then gold became a universal attraction since it could serve as a store of value for those who wanted to save for a rainy day. The original paper dollars were certificates that entitled the holder to redeem them for a dollar's worth of gold. Gold was pegged to the dollar at $35 an ounce.
In 1913, the Federal Reserve System was created by Congress. This was the beginning of the end for U.S. sound monetary policy. The money supply was expanded to fund wars, manipulate the economy and take care of special interests. This was acceptable for awhile since the U.S. had political and military might, and because it had huge amounts of gold reserves.
Predictably, the Federal Reserve began to print money for which there was no gold backing. In the late 1960’s the French demanded that the U.S. exchange one ounce of gold for each $35 they delivered to the treasury. It all ended in 1971 when President Nixon refused to pay out any more gold and, in essence, declared the U.S. insolvent.
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