The Chart That Exposes the Truth About the Dollar
In this video, Lynette Zang unpacks one of the most powerful charts ever released by the Federal Reserve. This chart is not a theory or a forecast. It is a cold, hard record of the destruction of the U.S. dollar's purchasing power.
The story starts in 1913, the year the Federal Reserve was created. At that time, one U.S. dollar could purchase $1.012 worth of goods. That dollar was backed by a 1/20th ounce of gold, creating a one-to-one value exchange. Once the Federal Reserve was legalized, they were allowed to print $2.40 for every 1/20th ounce of gold held in reserve. The dollar was no longer constrained by gold, and the era of fiat currency began.
The Decline Begins
Following the creation of the Federal Reserve, purchasing power immediately began to fall. Within years, the value of the dollar dropped by nearly 50 percent. By the time the government confiscated gold in 1933, citizens lost the right to convert dollars into gold. The value of the dollar had already fallen to just 79 cents.
Then came 1971. President Nixon officially severed the gold-dollar link by closing the gold window, ending the Bretton Woods system. This move allowed unlimited money printing and turned the U.S. into a fully debt-based monetary system. At that time, the dollar still held about 26 cents of its original value. But from there, the decline accelerated.
According to the Federal Reserve’s own data, the U.S. dollar now has just 3 cents of purchasing power left from its original 1913 value.
Why This Matters Now
Since 1971, central banks have attempted to manage inflation by manipulating interest rates and shifting production to countries with cheaper labor. This created deflationary pressure in some areas, but it was a short-term fix. Inflation is now sticky and accelerating.
The data shows that from 2008 to today, purchasing power fell from about 5 cents to 3 cents. The trend is not slowing. It is steepening. As the public loses confidence in fiat currency, hyperinflation becomes a real risk.
This is not speculation. This is happening right now.
Nominal Confusion: The Lie That Hides the Collapse
In 1971, the average U.S. wage was $1,290 per year and gold was fixed at $35 an ounce. That means the average worker earned the equivalent of nearly 37 ounces of gold.
Fast forward to 2024. The average wage is around $63,750, and gold trades around $1,870 per ounce. That same worker now earns just 34 ounces of gold annually.
On the surface, wages appear to have skyrocketed. But in gold terms, purchasing power has actually decreased. If you had simply been paid in ounces of gold in 1971 and held onto them, your wages would now be worth nearly $700,000 at today’s spot price.
This is the danger of nominal confusion. The numbers look bigger, but what they buy has shrunk. Gold has preserved its purchasing power. The dollar has not.
What Happens When Purchasing Power Hits Zero?
More than 4,800 fiat currencies have failed throughout history. Every single one went to zero. The U.S. dollar is following the same pattern.
Once a currency can no longer purchase anything, people stop using it. In 2009, central banks began testing negative interest rates, signaling there was no more value left to erode from purchasing power. Now they target your principal.
Once we are fully digital, central banks will have complete control. They have already stated that there are no limitations on how low they can go with interest rates. Your savings, your wages, and your financial future will be entirely at their mercy.
Central Banks Are Preparing for the End
While the public is kept distracted, central banks are preparing. Since 2005, they have been steadily buying gold. In 2023, they purchased more gold than in any other year since 1950. Look at their actions, not their words.
If central banks are dumping fiat currency for gold, what should you be doing?
This Is the Quiet Revolution
Lynette Zang has been preparing for years, and she wants you to be ready too. When the crisis hits, you will not get a warning. There will be no time to act.
The solution is simple. Convert your fiat currency into physical gold and silver. These tangible assets are proven tools for wealth preservation. They protect against inflation, market volatility, and economic collapse. They free you from a system designed to keep you dependent and in debt.
Final Thoughts: The Time Is Now
You do not have to take Lynette’s word for it. Look at the Federal Reserve’s own chart. See the truth for yourself. Then ask yourself one question: do you want to be holding dollars or gold when the purchasing power hits zero?
The writing is on the wall. The central banks see it. You can too.
Take Action Today
Zang Enterprises is here to help you build a personalized sound money strategy with physical gold and silver.
Call 833-GLD-ZANG (833-453-9264) or schedule your consultation through our website.
Protect your wealth. Preserve your freedom. Prepare now.
