Why You Should Care About the Federal Reserve and the Future of the Dollar

What is the Federal Reserve?

Quick-facts about the Fed

  1. The Federal Reserve is a private entity. It is not a government agency like the police, National Park system, or military.
  2. It is the central bank of the United States.
  3. The Fed can’t be audited and is not subject to the Freedom of Information Act. American citizens know very, very little about the actions the Fed takes outside of what is made public.
  4. Since its creation in 1913, the dollar has lost nearly 96% of its value.
  5. The first Great Depression happened within two decades of its inception.
  6. The Fed has the ability to mint dollars without the consent of the public who uses it.

The Dangers of the Fed

Never-Ending Debt

  1. The State prints -illions of dollars and loans it to banks or other corporations. This influx of supply decreases the scarcity and thus the value of the dollar. The capital you’ve amassed over your life is now worth less. To counter the devaluation, goods must increase in price to maintain the former value.
  2. Because your capital is worth less, and goods and services are worth more, you have less power to pay your debts. Thus, you are cast deeper into a financial hole that’s more difficult to climb out of.

Fractional Reserve Banking and the Cycle of Over-Lending

The Dollar’s Decline

Conclusion

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Andy McErlean

Andy McErlean

Slingin’ pixels outta Austin, Texas. Product Designer @ Praxent. Playing music in Pala. BJJ practitioner. Say hi: mcerlean.design.