Because the dollar is the basis of our economy and the central component of any transaction, it is vital that we as a country retain a stable currency. In 1913, the Federal Reserve was established to ensure such a currency. Unfortunately, the Fed has had the opposite effect. One 1913 dollar is currently worth $23.70. The final nail in the coffin of currency was in 1971, when Richard Nixon took the US off of a gold standard system. In other words, there is now no fixed value of our currency. Instead we have fiat currency (people’s trust in the economy sets the value of the dollar). The dollar devalued only slightly from 1913 to 1971 (from $1 to $4.22), but that is expected for an economy rapidly changing and a nation that fought 4 major wars. The problem came when Nixon removed any real value from the US Dollar. Anyone who remembers the mid-late ’70’s will tell you that inflation exploded in this time, as a direct result of Nixon’s actions. Over slightly more than 40 years, the dollar has devalued by 561%!
Because the dollar was not tied to any reliable marked (i.e. the gold market), the Federal Reserve has had free reign to basically set the value, and it’s experiments in phony interest rate hikes and cuts has led to a boom and bust economy. Oil boom, dot com boom, housing boom, etc.
We need to fix the dollar to gold’s relative value (to return to a true gold standard would be impossible and would hinder economic growth), and we also need to audit the federal reserve. Doing these two things will not be easy, but it will insure that the US (and by extension the world) has equal access to sound money.