Art Rolnick, Chief Economist for the Minneapolis Federal Reserve Bank, was recently asked what the nation's central bank produces. His answer... "We make money the old fashioned way. We print it."
Want to see just how much printing has taken place since the inception of the Fed in 1913?
| From 1913 | To 1988 | Multiplied | |
|---|---|---|---|
| The Federal debt | $1.2 Billion | $2,582 Billion | 2,152 x |
| Personal Income Tax | $0.03 Billion | $393.4 Billion | 13,113 x |
| Value of the dollar | $1.00 | $0.08 | 1/12th |
| Acquisition of real property and claims held by banking system. | Negligible | $2,531 Billion | Wow! |
The effects of nearly a century of the Fed's monetary policies are also evident in the graph shown in "The Crashing Dollar".
The Crashing Dollar
