Sunday, June 14, 2009

The meaning of Inflation

Most people have trouble understanding the meaning of inflation. Jim May at The New Clarion has done a wonderful job in this article "Say’s Revenge" of explaining this very immoral tool of governments around the world. The lack of understanding of Inflation has today encouraged governments (with help from Keynesian economists) to turn this method to covert stealing into an overt act of robbery.

"As Milton Friedman correctly wrote, inflation is always and everywhere a monetary phenomenon. By extension, therefore, so is deflation — which is why, contrary to mainstream economists, we are not in a truly deflationary period at present, insofar as there is no reduction in the supply of *money* that has happened over the last two years. Rather, it is demand destruction that has been happening, and that’s a horse of a different color."

Read the whole article.