For the longest time, the American population has been bombarded with constant drivel on the value of the U.S. dollar. However, over the past decade or so, we’ve been hearing about how the value of the U.S. dollar has gone down. Though we always hear this, do we truly know what makes the value of the U.S. dollar go down? Do we even know what makes the U.S. dollar valuable?
Well for many Youtube watchers, this video about “What gives the dollar its value?” is getting recognition, and since people would rather watch something than read (or research), this video is also trending.
Uploaded on the TED-Ed channel on June 23, 2014, Doug Levinson takes a virtual trip to the United States Federal Reserve and examines how the people who work there work together to balance the value of the dollar to prevent deflation or inflation. On a simplistic level, the explanation of the value of the U.S. dollar is very good. It doesn’t delve deeply into sociology, economics, and the such but explains straight-forwardly the proponents of where value comes from. However, most people who discover that the value is actually decided by an equation may not like the fact that the economic state of the country is decided by the minds of a few men.
Smart Money Daily, actually delves deeper into where the value of a dollar comes from. I personally agree that gold and silver should be the core value of our dollar because it links it to something tangible, or existent, instead of something estimated and determined. The amount of money out in the country was always associated with how much gold and silver we had along with its worth. Ergo, the U.S. dollar was always associated to stay the same either in times of prosperity or poverty, simply because it was backed up by Fort Knox, and yes, that is why we even have all that gold at Fort Knox for those who didn’t know.
The creation of the federal reserve and the switch to fiat money may have some good inclinations. Created by President Woodrow Wilson back during his term, he later on stated that creating the Federal Reserve made him “a most unhappy man”? Why is that? It is because it gave the power of the growth of the nation in the hands of the few, and guaranteed, those few control the banks. Summarized, Woodrow Wilson just gave the power of almost 99.99% of the people in the United States, to the 0.01% of the elite. Think about that for a minute. Our economy is justified by the value of the dollar, and they can adjust that value by a simple say-so. That is truly frightening.
If you would like to read the entire written document on Woodrow Wilson’s unhappiness – which is very similar to Ron Paul’s view of the Federal Reserve too – you can check it out at Salon.
[Image via TED-Ed’s What gives a dollar bill its value? – Doug Levinson Video]