🇺🇸 US dollar has lost 97% of its purchasing power since the Federal Reserve was created. A $3 item in 1913 would cost $100 today.

What happened

The article states that the US dollar has lost 97% of its purchasing power since the Federal Reserve was created in 1913. It gives an example: an item costing $3 in 1913 would cost $100 today, showing how inflation has reduced what a dollar can buy.

Confirmed

Global impact / market context

This long-term decline in purchasing power means money saved as cash loses value over time. For investors, it highlights why they might put money into assets that can grow faster than inflation, such as stocks or real estate, to protect their future buying ability.

Analyst inference

The Federal Reserve, which is the US central bank that manages money supply and interest rates, has overseen this inflation. Persistent loss of dollar value can push investors toward assets like gold or inflation-protected bonds, which are designed to keep up with rising prices.

Analyst inference

What to watch

1. The article provides no specific future events or data points to watch. It only states the historical fact of 97% purchasing power loss since 1913, with the $3 to $100 example. Confirmed
2. Investors might watch inflation reports, such as the Consumer Price Index, to see if the dollar's value is still falling. If inflation stays high, the purchasing power could continue to drop, affecting savings and investment returns. Proposed
3. A continued decline in dollar value could lead to higher costs for companies that rely on imports, as they may need to raise prices. This could squeeze profit per sale and reduce cash available for capital spending. Analyst inference

Evidence

• x.com