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US dollar losing value, recipe for economic suicide: Analyst

Thursday, 27 August 2015 6:07 PM [ Last Update: Thursday, 27 August 2015 6:08 PM ]

Bovard says that the Federal Reserve has destroyed the US dollar by adopting policies that devalue the currency.

Experts are correct in blaming the US Federal Reserve’s policies for a nosedive that the US dollar has taken in value, says an American analyst.

“The dollar has lost more than 95 percent of its value since the Federal Reserve was created in 1913,” James Bovard, a policy adviser to the Future of Freedom Foundation, told Press TV on Thursday.

He made the comments when asked to comment on remarks by American radio talk show host and political commentator Glenn Beck, who blamed the Federal Reserve for devaluing the US dollar into nothing but “trust us money.”

"We have printed money and printed money and printed money and made money so cheap that none of it is really based in anything anymore," Beck said earlier in a CNN interview.

In April, the US dollar value dropped to a two-months low. Back then currency strategist warned that the dollar weakness period was gaining momentum and would keep running for quite some time.

The Federal Reserve was supposed to “maintain a stable currency; instead it has destroyed the value of US dollar,” added Bovard.

“This is one more example of why we can’t trust politicians that guard the value of money or anything else,” he stated.

They have “kept the interest rates at basically zero for year after year,” he maintained. “That has crucified the middle class.”

“But it has worked out very well for the politicians and for the super rich who are able to play the market and sometimes have inside information on what the Federal Reserve is going to do,” he said.

“Gold has maintained its value far better than has the US dollar and that is one more reason why the current situation where folks are basically forced to put their reliance on a government-issued currency that has no backing, that is a recipe for economic suicide,” the analyst concluded.

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