The dollar's troubled past

Just to illustrate what the existence of the Federal Reserve and our system of fractional banking, let me do some math for you.

In 1913 the Federal Reserve Act was signed, and our money became bound to the will of the bankers. A single dollar in 1913 is the equivalent of $21.54 based on the national average inflation since then. That's a 95.4% reduction in purchasing power. To put that in perspective: my annual salary would have been $3115.31 before the government went on its money printing binge. I would be paying $27.86 in 1913 for my apartment. I don't think I really need to continue. This is just sad to watch. Rome collapsed because of their system of artificially expanding the money supply, as did numerous American colonies before they shifted back to gold (little known fact: the colonies experimented with fiat money numerous times, always to find that it ruined their economies and they promptly switched back to gold).

Scary times, indeed.

Money and debt

I hate being in debt. I just thought I'd throw that out there to begin. After my latest round of payments goes through I should be down to around $36K of debt. Ugh. That's a pretty daunting number, if you ask me, but it's manageable. And the first person to complain about their mortgage to me can blow me where the pampers is.

Anyway...

Given the continual downward trend of the stock markets, and the looming hyper-inflation once the $600B in loans from the Fed,$700B bailout from the government, and $250B in bank stock purchases by the government go through, I have decided to not bother putting anything over the minimum into my 401(k) for the time being. Chances are the dollar will completely tank over coming 6-8 months, in which case I will have much bigger things to worry about. Might as well pay off some debt and pour some money into hard assets while I can. If I live by the budget I have setup for myself, I can put about $1800-$2000 into my debt per month. Add in the couple grand I will get back from taxes and some money I have put away already and I should be able to get debt free in less than 18 months from now. Having done some calculations based on my spending habits, I only need ~$18K per year to spend on survival (ignoring loan payments). If I become debt free, my freedom jumps up dramatically, so that's what I'm to focus on from now on. Plan: become debt free, quite ITT, find a brewery with an opening, enjoy my life.


Oh, on the topic of moneys, if anyone has Boardwalk in the McDonald's Monopoly game, let me know: I have Park Place. We could split whatever's left of a cool million after taxes.

Here's a question fo you all...

Currency can be exchanged for goods and services.
Those who print their own currency are classified as counterfeiters and are arrested.
The government prints its own currency.
How is what the government does legal?

Money that has actual, inherent value, and a scarce quantity, makes far more sense than our current system. Besides, I've always wanted to carry around a satchel of gold coins. That would be awesome.