Saturday, August 2, 2014

What the Fed Has Done to the "Stability"of the Dollar Since 1917

In The Fed Flunks: My Speech at the New York Federal Reserve Bank, I provide some numbers on how much the value of the dollar has declined since the start of Fed operations in 1914, but there is nothing like comparing specific prices from that era and now, to get a sense of the damage the Fed has done to the value of the buck.

The lobby, Fairmont Hotel, San Francisco
Here's is a 1917 letter from a manager of the Fairmont Hotel in San Francisco to a person complaining about prices, back then, at the hotel.

Here's what you can buy now at the Fairmont for around what you could get a room for in 1917:

Sold in the gift shop of the Fairmont Hotel, today.



  1. What were the original purposes for setting up the Fed? I mean both the *real* purposes and the purposes as presented to the public?

  2. Read "the Creature from Jekyll Island" by G. Edward Griffin. Pretty well documented, good read, comprehensive history of banking, especially central banks.

  3. BIS Banksters Brazen Backroom Betrayals

    The apex of the system was to be the Bank for International Settlements in Basel, Switzerland, a private bank owned and controlled by the world's central banks, which were themselves private corporations. Each central bank sought to dominate its government by its ability to control treasury loans, to manipulate foreign exchanges, to influence the level of economic activity in the country, and to influence co-operative politicians by subsequent rewards in the business world."

    BIS Board of Directors:

    Chairman: Christian Noyer, Paris

    Mark Carney, London
    Agustín Carstens, Mexico City
    Luc Coene, Brussels
    Jon Cunliffe, London
    Andreas Dombret, Frankfurt am Main
    Mario Draghi, Frankfurt am Main
    William C Dudley, New York
    Stefan Ingves, Stockholm
    Thomas Jordan, Zurich
    629283546_0_xlargeKlaas Knot, Amsterdam
    Haruhiko Kuroda, Tokyo
    Ann Le Lorier, Paris
    Stephen S Poloz, Ottawa
    Raghuram Rajan, Mumbai
    Jan Smets, Brussels
    Alexandre A Tombini, Brasília
    Ignazio Visco, Rome
    Jens Weidmann, Frankfurt am Main
    Janet L Yellen, Washington
    Zhou Xiaochuan, Beijing