97% of ET members fail to understand money theory even at a basic level, yet you expect a meaningful explanation understood by the general public?
Why would anyone bother. Just go to the Fed website or to Wiki if you want to know how the Fed is really organized and operates.
not that I did the math on the ratios. but why would the dollar have to devalue in proportion to the economies size. we added in theory the potential productivity of a few hundred million people and incredible technology. in 1900 we did not have cars and planes... in fact we were just starting to get used to lightbulbs and electricity and telephones. I would think the value of economy should be monstrously higher. I think what you are showing is that the FED was able to suck all the extra productivity out. Something I have wondered about for years. Its seems it now takes to family earners to live the same way one family incomes lived in the 50s. Now some of that can be explained but I think a lot of that is inflation.