For several decades, U.S. currency hasn’t been issued by government but by the privately owned entity known as the Federal Reserve. Working in tandem with the U.S. Treasury Department, the Fed has been given authority to issue completely unbacked paper money. When it is distributed, it takes on value by acquiring a portion of the worth of all existing currency. The $10,000 price of the home in 1930 has steadily risen and is now nearing $500,000 in paper dollars whose value has been severely watered-down by creating and issuing more dollars. What has happened is inflation. And inflation is not rising prices; it is an increase in the quantity of currency that lowers the value of existing currency.
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For several decades, U.S. currency hasn’t been issued by government but by the privately owned entity known as the Federal Reserve. Working in tandem with the U.S. Treasury Department, the Fed has been given authority to issue completely unbacked paper money. When it is distributed, it takes on value by acquiring a portion of the worth of all existing currency. The $10,000 price of the home in 1930 has steadily risen and is now nearing $500,000 in paper dollars whose value has been severely watered-down by creating and issuing more dollars. What has happened is inflation. *And inflation is not rising prices; it is an increase in the quantity of currency that lowers the value of existing currency.*
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