SIOUX FALLS, South Dakota – Since the US dollar was severed from gold in August 1971, its purchasing power has eroded dramatically. This means that every dollar in a savings account is losing value. This fact is widely recognized by critics of the Federal Government’s deficit spending, and the Federal Reserve System, which prints the money that is borrowed by Washington to sustain its spending habits. However, we wouldn’t expect a major bank to be admitting as much, since recognition of the dollar’s depreciating value would undermine confidence in the banking system itself. wells-fargo-sfSpanSo it came as something of a surprise when Wells Fargo, as part of a corporate information campaign, distributed signs to its branch offices informing customers that “The dollar you invest today has more real value than one you’ll have in the future.” This was described as a “Wells Fargo fun fact” – but many Americans see nothing fun in that grim reality.
Posted on: Wed, 17 Jul 2013 05:29:31 +0000