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[quote=”agarcia”]Nobody addressed my comment about past inflation. Oh well. Let’s talk about sprite. Lol[/quote]
ag, If you search “federal reserve act” on Google the second link will allow you to download a copy of the Federal Reserve Act in .pdf format.
The Fed is doing exactly what it was chartered to do between 1929 and 1933. The failure of the Fed led to the failure of more than 1/3 of the banks in the U,S. It has the responsibility of providing elasticity to the financial system under circumstances like we are experiencing to make sure that banks are able to cover their transactions. Once the need for the increase is over it is destroyed in the same manner that it was created.
I agree that QE1 and QE2 effectively devalued the dollar but prevented the recession from becoming a full fledged depression.
The larger problem is the removal of the dollar from the gold standard. If total inflation had been calculated from 1935 to 1972 and gold repriced at that inflated rate and allowed to fluctuate with inflation an ounce of gold would be worth over $10,000 today. Instead it was left to the machinations of the commodities markets to set the price.
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