Looking at the past 100 years of the US dollars history, one theme becomes abundantly clear: in times of crisis, the US government has no issue with changing its own rules or breaking its own laws. And those temporary emergency measures have a nasty habit of quickly becoming permanent. Among the more notable milestones of the past century, the Federal Reserve was created (and soon after took possession of most of the nations gold reserves), the Bretton Woods agreement made the US dollar the worlds reserve currency granting it extraordinary advantage (which America quickly began abusing, continuing to do so up to today), and Richard Nixon ended the currencys convertibility into gold. Nixons turning the dollar into something backed only by the full faith and credit of the US government ushered in a new era for our country. The fiat dollar we use today for trade and investment is really only an experiment a little more than 4 decades old. We dont have a national experience to draw from in knowing how well it will work over time. But as we see the US money supply exponentially accelerating since the 1970s, and the Federal Reserve more than tripling its balance sheet since 2008, its only prudent to ask the question: Without constraints, are we in danger of destroying the purchasing power of our currency by making too much of it? FTX would like to gratefully acknowledge and thank Mr. Chris Mortenson for this excellent video series.
Posted on: Mon, 18 Aug 2014 00:04:13 +0000
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