🏛️ How America’s Money System Got Us $36 Trillion in Debt (And Why Groceries Are So Expensive)

Introduction

Ever feel like your dollar just doesn’t stretch like it used to? You’re not wrong. The U.S. is now over $36 trillion in debt, and $100 barely fills a grocery cart. How did we get here? Let’s take a quick journey through 150 years of America’s monetary policy to find out.

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🇺🇸 A Timeline of U.S. Monetary Policy

🔗 1870s–1930s: The Gold Standard Era

• The U.S. dollar was backed by gold, limiting how much could be printed.
• This kept inflation low but made it hard to respond to economic crises.
• During the Great Depression, the system made things worse.
• In 1933, FDR ditched the gold standard domestically to allow more government spending.

🌎 1940s–1971: Bretton Woods System

• After WWII, the U.S. dollar was tied to gold, and other currencies were tied to the dollar.
• But spending on wars and social programs pressured this system.
• In 1971, Nixon cut the gold tie completely. The dollar became a fiat currency (backed only by trust).

💸 1970s–1980s: Inflation and The Volcker Shock

• Oil shocks and easy money led to high inflation (stagflation).
• Fed Chair Paul Volcker raised interest rates above 15% to stop it—causing a recession but restoring the dollar’s value.

📉 1990s–2008: Low Rates and Deregulation

• The Fed kept rates low. Financial deregulation led to booms and busts (dot-com, housing).
• National debt began climbing, especially after 9/11 and the 2008 crash.

🏦 2009–2020: Post-Crisis Stimulus

• Massive government borrowing and Quantitative Easing (QE) fueled recovery.
• Debt grew from $10T to $23T.
• The Fed kept rates near zero for years.

🦠 2020–2023: COVID and Inflation Comeback

• COVID stimulus ($5T+), supply chain issues, and more QE sent prices soaring.
• Inflation hit 9% in 2022, the highest since the ’80s.
• The Fed reacted with rapid interest rate hikes.

🧾 2024–2025: Where We Are Now

• $36 trillion in debt, driven by:
  • War spending
  • Tax cuts
  • Social programs
  • COVID relief
  • Rising interest payments on old debt
• Even as inflation slows, prices stay high—and people feel squeezed.

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📉 So Why Does $100 Feel Like $20 Now?

Because the dollar has lost about 97% of its value since 1913. That’s what happens when money supply grows faster than the economy. Here’s what that looks like:

📊 Chart: U.S. Debt vs. Dollar Value (1913–2025)

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🧠 Final Thoughts

America’s journey from gold-backed money to fiat currency helped make the economy more flexible—but also more vulnerable to debt, inflation, and overspending. Today’s $100 may feel weak, but it’s the result of decades of compounding policies.

If you’re wondering why your grocery bill is skyrocketing, this is the story behind it.

– Man Who Knows Nothing