Concepts

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Inflation




Average Inflation rises in a fractional reserve system are tantamount to theft.
If you lent me 100 units of currency in year 1 and in year 5 I gave you 90 units back, you would not be happy at all. But when a government inflates at 2% a year, effectively that is what they do.

Inflation measures

Problem with inflation measurements is they are not accurate or unbiased.

Mark Faber on the Zimbabwe school of economics

Marc Faber on inflation


Peter Schiff on the Feds gamble

Peter Schiff on the Feds gamble

  • Printing money is inflation. The rise in prices is the consequence.
  • Things might appear to get better but that is on a nominal basis.
  • Falling prices are good, they are part of the correction.

Links

http://www.bbc.co.uk/news/business-20727291
http://www.ukipdaily.com/inflation-and-deflation-twin-evils/
http://www.cityam.com/article/1397610296/inflation-nasty-stealth-tax-we-should-celebrate-its-defeat
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