Friday, October 18, 2013

When government tries to stabilize the money supply

The Federal Reserve was created in 1913, with a goal of stabilizing the U.S. money supply.  I've posted charts of what happened afterward dozens of times (the blue line below). 

Since 1913, the money supply - and  therefore, prices - have slowly gone through the roof. 

I've never seen the previous hundred years contrasted with the century of 1813 to 1913 (the red line below). 

The disastrous blue line was the unintended consequence of some Washington D.C. blowhards trying to smooth out the little blips in the red line.   Truly amazing. 

Go to Zero Hedge to see more documentation. 


1 comment:

Stephen M. Smith said...