Money continued,
So whats wrong with your money?
So as not to go to far back in this article I intentionally started with Breton Woods. In the description of this monetary arrangement, you’ll read that each country agreed to tie its currency to the price of gold.
But what you don’t read is that the United States became the world’s Reserve Currency after World War II. What was Brenton Woods System? 1-22 July 1944.
And the U.S. dollar was now the world reserve currency and it was to be tied to the price of gold.
The agreement was that the U.S. would keep the money (actually currency today’) at a minimum. Because we all know that that when there’s more of something the cheaper it becomes. Over printing of a currency is no different it causes inflation.
Monetary Inflation
So what really is inflation anyway? Monetary inflation is described as a sustained increase in money supply of a countries currency.
Price Inflation
Inflation is cause by the increase printing of a currency. Prices on items will absorb this newly printed currency. Now if you remember one of the definitions of actual money was that it would maintain its value (purchasing power) over long periods of time.
As you know the Federal Reserve has printed the Federal Reserve Note into infinity.
So now you can begin to understand what’s happened to your money!
