The answer to the question in the title is "not much!" But then again, it depends on one's time horizon. However, if we go back to 1913, which by the way was the year that the Federal Reserve System was established, a dollar in 1913 would be worth only a "five cents" today. This is very interesting, because one of the Fed's main objectives is to maintain a stable currency as the protector of our economy's stability. Then again, in this day and age, who wants to be accountable for one's action.
Since the Fed cut the Fed Funds rate, it seems every currency, inclusive of Third World currencies, in the world has rallied against the dollar. The Euro is at an all time high, recently the dollar was trading at $1.412 to the Euro. Even the Canadian dollar (loonie) is now at par against the dollar, which is the first time in three decades. However, take solace, the dollar did hold its own against the Zimbabwean dollar where inflation in that country is only running at 15,000% a year.
In addition to the dollar's weakness against currencies in general, the price of oil exceeded $84 a barrel; and with the prospects of reflation, the price of gold went to $740.
Don't worry. The Fed has everything under control. Just look at how well they have protected the value of the dollar.
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