The Federal Reserve’s official target rate of inflation is 2% per year.
Put another way, that means that if the Fed hits its target, the value of today’s dollar will only be worth around a third of its current value in 50 years.
Think that can’t happen? It already has.
Look at the chart below showing the decline in the purchasing power of the US dollar since the creation of the Fed in 1913:
With the Fed now in “extreme easing” mode, having printed up nearly $3 trillion in thin-air money just this year alone, it’s not a stretch to expect the value of the dollar to decline even more precipitously from here than current estimates predict.
by brushhog 
