Für Euklid - lasst den doch wieder mitspielen!

verfasst von Elmarion, 31.10.2005, 16:18

-->INFLATION / DEFLATION

It should be crystal clear by now. Higher prices at the pump and at the supermarket are not inflation. They are simply symptoms and not the cause. The rise in oil prices because of tight supply and greater demand has nothing to do with inflation. The same with rising food prices, which are dependent on global demand, weather, and the success of the year’s harvest. Inflation has and always will be a monetary event brought on by government and its central banks. It is caused by an expansion in the quantity of money. Deflation is caused by a contraction of the supply of money. As shown in the chart below, inflation has been almost non-stop since the establishment of the Federal Reserve.


<ul> ~ Stormwatch</ul>

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• Für Euklid - lasst den doch wieder mitspielen! - Elmarion, 31.10.2005, 16:18