The U.S. dollar has been losing purchasing power since the Federal Reserve was established in 1913. According to the Federal Reserve's own data, it is now worth just three cents of its original value. In this eye-opening breakdown, Lynette Zang explains how this erosion of value has occurred and why tangible assets like gold and silver are essential to financial survival.
The Systematic Destruction of the Dollar
In 1913, when the Federal Reserve came into being, one dollar could buy $1.02 worth of goods. That was because it was backed by gold. A dollar bill represented 1/20th of an ounce of gold, and you could exchange it for the real thing.
But once the Federal Reserve took control, the government gained the ability to print 2.4 times more money than gold reserves actually covered. This shift opened the door to inflation and marked the beginning of the dollar’s long decline.
By 1933, after the U.S. government confiscated citizens' gold and revalued it, the dollar had lost nearly a quarter of its purchasing power. By 1971, during the Nixon administration, convertibility to gold ended altogether. At that time, the dollar still retained 26 cents of its original purchasing power. Today, it stands at three cents.
The Illusion of Rising Wages
Lynette Zang clearly illustrates how inflation creates what she calls “nominal confusion.” This is the illusion that higher wages mean greater prosperity.
- In 1971, the average wage was $10,250, and gold was priced at $35 per ounce. That equals 294 ounces of gold for the year.
- In 2024, the average wage is about $63,750, and gold trades around $2,375 per ounce.
- If you received 294 ounces of gold today instead of fiat dollars, your annual wage would be $698,500.
So while wages may appear to be higher in dollar terms, they buy far less. In 1971, a family of four could live on a single income. Today, two incomes are often not enough, and government aid is necessary for families earning under $250,000.
That’s not progress. That’s wealth destruction.
The March to Zero
History shows that every fiat currency eventually goes to zero. The dollar is not immune. Since 1971, inflation has been managed through interest rates and globalization, but the result has been a near-total loss of purchasing power.
Zang warns that we are nearing the final stage. When purchasing power reaches zero and confidence is lost, hyperinflation begins. At that point, central banks will have no choice but to impose negative interest rates, attacking not just your income but your savings.
Once the system becomes fully digital, central bankers themselves have admitted there will be no limit to how far rates can go. That is when the real crisis begins.
Gold Is the Only Proven Inflation Hedge
In 2009, central banks began testing negative interest rates. Around that same time, gold and silver began reemerging as the only proven stores of value.
Gold has protected wealth for thousands of years. Cryptocurrencies are too new and untested to be relied upon in a systemic collapse.
When you see prices rise at the grocery store week after week, that is not random inflation. That is the engineered destruction of your wealth. Lynette shares a powerful example from her own life. When she was newly divorced with young children, she could buy groceries with $20. Today, that same $20 buys almost nothing.
This is by design. Central banks have used inflation to silently strip away your purchasing power, and they are preparing to do it again.
Central Banks Are Buying Gold at Record Levels
Lynette highlights a revealing chart that shows central banks have been quietly buying gold since 2005, two years before the financial crisis.
In recent years, those purchases have skyrocketed. Central banks are now buying more gold than at any other time in modern history. That tells us everything. They know what is coming. They are preparing for a collapse of the current system.
If gold were obsolete, as the media often claims, why are the central banks hoarding it?
They are not telling you to buy gold. In fact, they do not want you anywhere near it. Because once you move into tangible assets, they can no longer easily strip your wealth away through inflation and currency devaluation.
The Quiet Revolution Starts With You
Zang urges viewers to act now, before it is too late. You do not need to wait for a warning sign. When the final collapse comes, it will come fast. There will be no time to move your assets, no time to restructure your wealth.
You must be ready in advance. That means building a sound money strategy now, converting your fiat currency into physical gold and silver, and taking control of your financial future.
Do not wait for permission. This is not a drill. This is history repeating itself.
Take Action Before Confidence Collapses
Zang Enterprises is here to help you take control of your financial destiny. Our strategy specialists are ready to guide you in creating a sound money strategy tailored to your needs using physical gold and silver.
Schedule a free consultation by calling 833-GLD-ZANG (833-453-9264) today.
Protect what you’ve earned before the dollar becomes worthless. The time to prepare is now.
