$1 in 1913 is now only 3 cents, and nobody voted for that

[00:00:00]Here's a number that should stop you in your tracks.

[00:00:03]$1 in 1913, the year the Federal Reserve was created, has the same purchasing power as about 3 cents today, not 30 cents.

[00:00:16]3 cents.

[00:00:18]That means the dollar has lost over 97% of its value in just over a century.

[00:00:26]Now, ask yourself, did you vote for that? Did your parents?

[00:00:31]Did anyone? To understand what's really going on, we need to separate two things that are constantly confused.

[00:00:38]There's price inflation, which is what you see at the store, and then there's monetary monetary inflation, which is which is the actual increase in the in the money supply, the amount of currency circulating in the system. These two things are related, but they're not the same.

[00:01:00]And the distinction matters enormously because price inflation is the symptom.

[00:01:07]Monetary inflation is the cause. Think of it this way.

[00:01:12]Imagine a small island with 10 people and 100 gold coins.

[00:01:17]Each person has 10 coins and a loaf of bread costs one coin.

[00:01:23]Now, imagine a ship arrives and dumps another 100 coins onto the island.

[00:01:28]Nobody made more bread. Nobody worked harder.

[00:01:32]There's just more money chasing the same amount of stuff.

[00:01:36]So, the price of bread rises to two coins.

[00:01:40]Everyone's coins are now worth half of what they were.