The Federal Reserve to Devalue the Dollar by 33%

The Federal Reserve announced its plan to explicitly steal from the American populace through a plan that will devalue the dollar by 33% over the next 20 years:

The Federal Reserve Open Market Committee (FOMC) has made it official: After its latest two day meeting, it announced its goal to devalue the dollar by 33% over the next 20 years. The debauch of the dollar will be even greater if the Fed exceeds its goal of a 2 percent per year increase in the price level.

This means that every dollar you hold will only be worth $0.67. The people most harmed by this are the poor and elderly as the poor have little purchasing power to begin with and the elderly rely heavily on savings that they accrued over their lifetimes. If somebody was able to save $1,000,000.00 over their lifetime they would only have $670,000 dollars if the currency devalued by 33%. When you combine the lesser purchasing power with the higher prices asked by vendors to makeup for the loss they experience because of devaluation you have an extremely scary picture. So what’s the solution? A commodity backed monetary unit:

An increase in the price level of 2% in any one year is barely noticeable. Under a gold standard, such an increase was uncommon, but not unknown. The difference is that when the dollar was as good as gold, the years of modest inflation would be followed, in time, by declining prices. As a consequence, over longer periods of time, the price level was unchanged. A dollar 20 years hence was still worth a dollar.

Make no mistake, this plan by the Federal Reserve is pure theft and those who hold dollars should be furious that the government granted a monopoly on issuing money to an organization. Of course if the dollar devalues dramatically the United States government enjoys the benefit of paying off its debt using less purchasing power (and since they can just increase taxes they’re not negatively affected by the devaluation).