testosteronepit.com / By Wolf Richter / DECEMBER 12, 2013 AT 4:44PM
The Federal Reserve was established in 1913 primarily, or at least ostensibly, to manage the dollar. The way the Fed has “managed” is best shown in a nifty chart that juxtaposes theexchange rate of the dollar against the Swiss franc (blue line) and the US Consumer Price Index, not seasonally adjusted (red line).
The destruction of the dollar – so clearly visible against the Swiss Franc – took on a sudden virulent form in 1970. I was just a kid then, but that’s what has transpired essentially my entire life. It’s not in some distant past. Every day, all day long, the relentless destruction of the dollar has continued, interrupted only by temporary but tradable rallies. Chart by Global Financial Data: