The Federal Reserve’s Explicit Goal: Devalue The Dollar 33%

This is very troublesome for those planning to live on a fixed income long term.  This type of planned devaluation is a structured default on government obligations like social security payments.  It is also a blatant  transfer of wealth(ie tax) from the savings and wages of the people  to the Federal Reserve and the government.  What is worse, is the the planned 2% rate of inflation is based on Core Inflation, which omits the impact of food and energy, where most inflation frequently occurs.  This type of systemic criminal behavior on the part of the Federal Reserve is another reason to own gold, silver and other commodities as a way to opt out of this insidious transfer of wealth and it’s destructive impact on the middle class. 

JT

The Federal Reserve Open Market Committee (FOMC) has made it official: After its latest two day meeting, it announced its goal to devalue the dollar by 33% over the next 20 years. The debauch of the dollar will be even greater if the Fed exceeds its goal of a 2 percent per year increase in the price level.

An increase in the price level of 2% in any one year is barely noticeable. Under a gold standard, such an increase was uncommon, but not unknown. The difference is that when the dollar was as good as gold, the years of modest inflation would be followed, in time, by declining prices. As a consequence, over longer periods of time, the price level was unchanged. A dollar 20 years hence was still worth a dollar.

But, an increase of 2% a year over a period of 20 years will lead to a 50% increase in the price level. It will take 150 (2032) dollars to purchase the same basket of goods 100 (2012) dollars can buy today. What will be called the “dollar” in 2032 will be worth one-third less (100/150) than what we call a dollar today.

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via The Federal Reserve’s Explicit Goal: Devalue The Dollar 33% – Forbes.

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