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A Dollar’s Worth in 1913 Costs $23.52 Today. Thank the Federal Reserve Banksters!

Thanks to Eric G. for this one. According to the Federal Reserve’s own Minneapolis Ninth District website, the U.S. Dollar has been devalued by 2,352% since the Federal Reserve came into existence in 1913. If you feel poorer, it’s because you are. What a Dollar bought then, takes $23.52 – or more than 3 hours of labor at minimum wage – to buy today. You can thank the Banksters.

18 comments to A Dollar’s Worth in 1913 Costs $23.52 Today. Thank the Federal Reserve Banksters!

  • Rabbit

    In the immortal words of an old farmer I know: “That’s why they’re cocksuckers.”

  • Kim

    Is this a wind up? The dollar after 99 years will only buy .5 to 2% of what it did in 1913! No more maybe less and lesser as Ben makes his drops on behalf of the world.

  • Silver Alert

    3 Hours at today’s wages! Shocking!

    Just for the heck of it I did a quick lookup of wages back then. In the 1910′s it was $750/yr. Now I now that they worked longer and harder back then and a 40/hr week is a recent invention but for some basis of comparison lets stick w/ 2080 work hours in a year. So we get:

    $750 / 2080hrs = .36 per hour. So in 1913 it also took 3 hours of work to buy a dollar’s worth of goods!

    • SGT

      are you saying $750/year was the MINIMUM (wage) income at the time, or the MEDIAN income? Because the minimum wage today is NOT the MEDIAN income and it’s a poverty-level wage, not a livable wage. Very hard to support a family on $8/hour.

    • Ken

      …also, in 1910 people did not need money for EVERYTHING! Most people lived on farms, had their own water source like a well, out house so they did not need to PAY for a sewer, made most of their own food and usually had all the fuel they needed to cook (wood from their land).
      Today farmers are harassed for selling raw milk! George Orwell could not even imagine such tyranny! Dumbed down is not even close to what modern mankind has become, it is more like drugged, poisoned and paid down.

  • dishesdealer417

    Meanwhile gold & silver will still buy plenty. Copper doesn’t seem to buy as much as it did though. It used to take 10 real copper cents to make one silver dime. Now a Dime is worth over $2.00 and those 10 pre Oct. 1982 copper coins are only worth about .30 cents in copper value.

    • PitBull Pappa

      You mean a pre-65 dime is worth over $2.00 ($2.06 at the time of this writing). In pre-65 coin terms, a gallon of gas costs less than $.20 compared to fiat $3.95(premium gas) where I live.

      Keep stack’n… hold strong & go long…

      PBP

      • dishesdealer417

        Yes, real silver dimes = pre 1965 dimes. But I also stack pre Oct. 1982 95% copper U.S. cents before they were devalued to copper plated zinc. Some people say it isn’t worth it because you have to sort them, but if you are watching some old movie or tv or somthing then it is a decent use of your time to sort copper too, IMO.

        In the Palestinian area of Isreal, they are thinking about doing away with copper coins because the people there need the copper so badly to repair wiring & stuff in houses and cars that they are melting them down. so I figure that copper coins will always have value.

  • Alvin

    Have a flyer here from April 24, 1984 (Canada), here’s a few then and now prices. Can milk then .59, now $1.89 up 320%. Flour, then $1.99, now $4.99 up 251%. Sugar then $1.39, now $3.99 up 287%. Pk sliced bacon, then .98 now $5.99 up 611%. Eggs, then .99 now $3.79 up 383%. I think my statement speaks for itself.

  • ArvUK

    Hi Sean,

    Yesterday I went to a local mall just outside of East London in Essex. There was a stand there for a “We buy gold” company. I approached the stand feining interest in the signage and within seconds the girl behind the counter asked if I was looking to sell gold. For about 20 minutes I stuck up a conversation with her asking things like:

    1. How much do you pay per gram?
    2. Do you pay cash or wire transfer into a bank account?
    3. Do you accept non-jewelery types of gold such as coins and bars?
    4. What do you do with the gold you buy?
    5. How much gold do you take in each week?
    6. What types of gold have been bought recently?
    7. Do you buy silver?

    The answers were surprising.

    1. We don’t have a set price. Our scale is linked to the computer which offers a price depending on the spot price at the time. She asked how much gold I was looking to sell and what offers I’d had. I said 300 grams but wouldn’t tell her what prices I’d been offered. (I haven’t been offered as I wasn’t looking to sell). She then became VERY interested and started with her script of sales talk, “We want others to compete with us and just make sure we offer the best prices. Bring your gold here and we will give you a great price.” (I mentally rolled my eyes). “What type of gold do you have?” I said only “18 and 24 karat jewelery”. She became more adament I bring my gold to her.

    2. She said cash or wire transfer of ANY amount was possible. I was shocked at that statement.

    3. Coins and bars are also bought. We pay more for those but have to call head office to get authorisation from the owners before we buy those.

    4. We recycle the gold back into bars and sell to the “industry” (whatever that means). I said that only applies to jewelery, not bars and coins as it would be silly to melt them down and recast into bars as they are more pure than melting down a mix of 9, 15, 18 karat gold jewelery. That made her stop and think. I told her I guarantee that your owners are holding on to every coin and bar from well known mints and refineries.

    5. In a given week they can take anywhere from 100g to a few kilograms.

    6. They recently bought earings, rings, a Krugerand and, get this, EIGHT gold soverigns! I could only shake my head in disappointment at the fools parting with their gold.

    7. Most surprising was what she had to say about silver. “Silver? We buy it but it not worth anything. We pay very little for it, around £0.25 a gram.” I asked how much silver they bought this week, she said about 50 grams. I said “if only people realised how rare silver is.” Her confused look led me to “educate” her somewhat. After 20 minutes of listening to my silver information she seemed very interested in knowing more. I directed her to “truthnevertold” on Youtube. I told her if anyone walks up to sell silver while I’m standing there I will offer them double what they pay. When she asked “Why?” I pulled out a 1oz Canadian Maple from my pocket and handed it to her. I said “One day silver was money and one day it will be again.” She was in awe and said “I’ve never seen one before. Where can I buy them?”

    I think we can safely say we have another stacker amongst us. :-)

    I just wanted to share this with you.

    ArvUK

  • david

    yes this is crazy…not to change the subject, but does anyone know when the Fed’s minutes will be publicly posted? Is there a live stream we can watch? Is it on TV? Is Cspan covering it?

  • kevin

    Need some help guys-

    We have all heard of EO’s(exec. orders)

    There are also TO’S(treasury orders)

    Johnson sighned silver bye bye on july 23 1665

    “If anybody has any idea of hoarding our silver coins, let me say this. Treasury has a lot of silver on hand, and it can be, and it will be used to keep the price of silver in line with its value in our present silver coin. There will be no profit in holding them out of circulation for the value of their silver content”-LBJ

    TO 155-05 issued july 26 1965(3 days AFTER lbj sighned coinage bill

    TREASURY ORDER: 155-05

    Page Content
    SUBJECT: Delegation – Purchase of Metal for Coinage

    CANCELLATION DATE: May 16, 2007(by the way go look at kitcos Silver chart for that day.) hmm. Looks familiar doesnt it.

    REASON FOR CANCELLATION: TO 155-05, dated July 26, 1965, is deemed obsolete. TO 155-05 is cancelled.

    DELEGATION, n.

    1. A sending away; the act of putting in commission, or investing with authority to act for another; the appointment of a delegate.

    The duties of religion cannot be performed by delegation.

    2. Th persons deputed to act for another, or for others. Thus, the representatives of Massachusetts in Congress are called the delegation, or whole delegation.

    3. In the civil law, the assignment of a debt to another, as when a debtor appoints his debtor to answer to the creditor in his place.

    I can not find the text to TO 155-05 HELP!!

  • Mr Bill

    The original quote above stated..
    “According to the Federal Reserve’s own Minneapolis Ninth District website, the U.S. Dollar has been devalued by 2,352% since the Federal Reserve came into existence in 1913.”

    That basic statement means the same as $1 worth of purchases made in 1913 costs $23.52 today (2012). But there is a better way to say the same thing that should be more useful for the average person to get a clearer picture of what is happening in society today. That better way is to think of this increase in costs (decrease in value of money) like an annual compounding increase rate. So, the $23.52 cost increase over 99 years is the same thing as a 3.28 percent average annual compound rate.

    How is the average annual compound rate (3.28 percent) a better way to look at the cost increase over 99 years ($23.52)? The 3.28 percent annual rate can be directly compared to the annual rate of increase in inflation. This 3.38 percent is, in fact, the inflation increase number reported by the Federal Reserve, the government and the media. For example, the Fed routinely states that they desire the US economy to have a 3 – 4 percent annual inflation increase. This 3.28 percent number is right in line with the Fed goal. But, do we get the picture here – this inflation is compounding every year and the costs of our purchases also compounding upwards year after year! Doesn’t this mean that, on average, ordinary citizens are losing ground year after year, unless wages are also compounding upwards at about 3.28 percent per year? All of this goes hand in glove, but most folks don’t realize this.

    The annual compound rate can also be used to estimate the cost growths for any number of years, past or present. To do this, convert the 3.28 percent to the factor 1.0324. Then, just multiply that 1.0328 factor by itself for the number of years of interest. Lets assume 3.28 percent compounding over 5 years. That gives 1.0328 times 1.0328 times 1.0328 times 1.0328 times 1.0328 or 1.1751. This means that, in 5 years, costs will be increased by 17.51 percent.

    You can even get some idea of what happens if the compound rate was changed. Lets assume, it goes to 6.0 percent per year for 5 years. Then the factor is 1.06, and a similar 5 times multiply gives 1.3382 or 33.82 percent cost increase.

    Another really big benefit is that we can see more clearly the impact over a long period of time. Seeing that inflation caused the cost of purchases with the 1913 dollar to increase to $23.52 does not help much when looking forward. But, when the long term impact of such a small(3.28 percent)annual increase, alarm bells should go off. For instance, we can see that, assuming a 3.28 percent per year inflation, the purchases for $1.00 in 1913 cost about $1.1751 in 1918 (5 years latter). But, if we look forward to 2012 (99 years later) the costs will be about $23.52. What a big difference – and the inflation rate was unchanged! The key point is a few years of compounding does not raise any red flags, but if the same inflation continues over many years, the costs look like an expanding snow ball and the economic impact can become entirely out of control.

    By the way, the growth rate in the total US government debt has also been steadily increasing at a fairly constant annual rate of 9 percent per year for the past 40 years or so. The total US debt was about $0.5 trillion (or a little less) in 1970 and has steadily compounded every year to about $16 trillion now. In the early years, very few people noticed, but as the years passed the debt has become a larger and larger snowball moving forward with potentially destructive impact on the US economy.

  • Tom

    Check my math, but does that not equal an average yearly inflation rate of 23.52% PER YEAR?

  • Mr Bill

    Tom,
    Your math is basically correct – for a straight line between two points. But, the straight line approach does not represent the most common reality. The straight line approach involves addition of fixed factors, but the more fundamentally correct approach involves multiplication of fixed factors. The latter falls into the general category of exponential equations, which involve powers and logarithms.

    The appearance of a straight line estimate suggests the same constant impact, every year. But, the more realistic exponential form suggests minimal impact early on, but with increasingly significant impact to follow. And, after many periods, the impact can become overwelling.

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