# Letter Re: The Federal Reserve’s Inauspicious 100th Anniversary

Captain Rawles,
The inflation calculator that you linked to is way off. If you punch in five cents it returns \$1.16. [JWR Adds: This is because their calculator uses "official" CPI data, which is badly skewed.]

In 1913 it cost five cents for a loaf of bread. I would love to find a store that sells a loaf of bread for \$1.16 today.

Being a master of Excel, I played around with this a few months ago. It turns out that a loaf of bread costs about \$4.00. An increase from five cents to four dollars is an increase of 7,900%. The 2,226.1% increase claimed on the inflation calculator is too low by nearly a factor of 4.

An ounce of gold in 1913 cost \$20.68. When I did these calculations gold cost \$1677 per ounce. That is an increase of 8,009%. So I think it much more accurate to say that inflation since 1913 is roughly 8,000%.

Another point that might be interesting to those who are not aware: the value of gold does not change. The number of fake reserve notes it takes to buy gold keeps going up but the value doesn’t change. The evidence: Take the cost of a loaf of bread in 1913, five cents, and divide it by the cost of one ounce of gold in 1913, \$20.68, and you get 0.24%. Then take the cost of a loaf of bread today, \$4.00 and divide it buy the cost of one ounce of gold today, \$1677 and you get 0.24%. It costs exactly the same amount of gold today to buy a loaf of bread as it did in 1913!

So if you leave the fake money out of the equation and only calculate with bread and gold, you find that there has been no inflation at all. I think this proves that inflation is a construct of the criminals in the Federal Reserve along with their fake money. – Maddog