Economics 101 - Inflation is not higher prices, higher prices is the result of inflation. Inflation is the expansion of the money supply. In simple terms, when the government prints out more money, this is called expanding the money supply, in essence it is "inflation".
When this money begins to seep into the consumer economy, then you will get the result which is = higher food prices, higher everything prices because commodities go up when money is cheap!
Watch OUT! The sky is falling!!! Be ready for a "thunder storm"!!!
This blog will discuss issues about Investing which is my favorite hobby and passion, the economy which affects our decisions directly or indirectly, whether we know it or not; the importance of families, which molds our thoughts, ideas, associations, beliefs, and behaviors; and politics, which some people are passionate about discussing/debating, or has apathy toward it. Regardless, these issues somehow are all related to our thinking and behavior.
Friday, February 13, 2009
What is Inflation? It's NOT Higher Prices This is the Result!
Labels:
chaos,
collapse,
death of the dollar,
Gold,
great depression,
greed,
inflation,
interest rate,
money,
money supply,
runaway spending,
Silver,
socialism,
spending,
thieves,
US Debt
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