The FED and Inflation

[pkveazey]

The Federal Reserve Bank was created in 1912 and went into business in 1913. The Federal Reserve knew way back then that they were going to create Inflation so they targeted it at 2% per year so the Sheeple would hardly notice it. Even today, their target is still 2% per year but we all know it has been much higher than that. I just sat down and calculated $1 @ 2% per year from 1913 to 2023 and it came out to $8.83. That means that something that cost $1 in 1913 should cost $8.83 today. Hmmmm...... We all know that things just didn't turn out the way the FED had intended. In 1913, you could rent a hotel room for one night for $1. Today, you'd be lucky to find one for $100 per night. Using their planned inflation rate of 2% per year, we should be able to rent a hotel room for $8.83 per night. OK, let's round it off at $9 per night. The Federal Resrve knew that they were going to screw us but they didn't know just how bad we actually were going to get screwed. Damn!!! You'd at least think that they would have used a condom.

[Nemo]

Just remember.  I'm from the government and I'm here to help you is a socially acceptable way to scream BOHICA!

Nemo

[JohnyMac]

Yupper PKv.

Also, in 1920 a good quality new men's suit was the price of an oz. of gold. ~$30-.

Today, a good quality men's suit is about $1,500. Just a hair less then an oz. of gold. Probably $150- less because the fabric and labor is farmed out to China.