What Is Inflation? | Price Inflation Versus Printing Money Inflation

What Is Inflation? | Price Inflation Versus Printing Money Inflation


what is inflation price inflation versus printing money inflation
according to Wikipedia inflation has this definition, “in economics inflation is a persistent increased to me general price level goods and
services economy over a period of time” we will call this definition price inflation. it is to be sure what the vast
majority (the bottom 99.9999% of us) see the greatest impact from. it is
generally what most people mean when they use the term inflation as a
result in a spending more and more of our money or less and
less goods and services. price inflation robs us of the wealth that we create and results in a lower
quality of life for everybody because it diminishes our
ability to freely participate in commerce with each other. on the same
Wikipedia page the following is also said about
inflation: “economists generally believe that high reached inflation and hyperinflation are caused by
excessive growth up the money supply.” excessive growth to
the money supply then, is generally what economists are
referring to when they use the term inflation. since it is all too common to
apply these two concepts interchangeably and confusingly to the
term inflation we will make a distinction between the
two concepts here as noted earlier, an increase in prices will
be referred to here as “price inflation.” excessive growth in the
money supply will be referred to here as circulatory
inflation. The mantra that many economists, particularly so-called Austrian School,
have been repeating is there price inflation is the direct result of circulatory inflation or by the
“government printing too much money” WROOONG it sounds
good on paper right in theory, circulatory inflation could cause price inflation in some parallel universe circulatory inflation
existed there first of all the government does not print money. with the exception of minted
coins all other currency is issued by
privately-held banks at interest. since all of these privately
published representations (which we call currency)
have to be paid back to private banks at interest which is paid along with the
principal out in circulation it is mathematically impossible for circulatory inflation to
exist Second of all, are we to believe that manufacturers other businesses owners possess some magical telepathic powers to detect when a supply of currency is
an expanded and then automatically raise their prices to compensate? is that why prices have been increasing
as much as 10 percent annually WROONG! since we have been obligated to
pay back these representations of entitlement with interest out of circulation the inevitable result
is in fact circulatory deflation in other words paying interest on every single unit of
currency in circulation causes a decreased in the volume of
currency according to Australia4MPE.wordpress.com circulatory inflation or even a hyper-inflation is indeed a
mathematical impossibility under any interest-based monetary system so under the current monetary system if
circulatory inflation is mathematically impossible did what DOES cause price
inflation one word: interest since interest is embedded into every
single business transaction economy it is by and large the leading driver increasing prices in a 2012 debate with
Mitt Romney President Obama said its “It’s Math. Its Arithmetic.” ironically Barack Obama’s 2008 campaign returned a
package unopened containing mathematical proof that
the current interest-based system will result in monetary failure
knowing full well what the package contained known who its
sender was but that’s a topic for yet another video so you say well inflation is just a fact
of life WROONG! visit people from mathematically
perfect economy Facebook page and ask questions please like subscribe favorite and by golly share

8 thoughts on “What Is Inflation? | Price Inflation Versus Printing Money Inflation

  1. Very good & thanks for the plug my friend , however if anyone was to read my blog they will notice when I refer to banks I tend not to associate the word private with the word bank not because these banks are not on the most part private because they are , but if I did use the words " private bank " for example on first glance the neophyte may well get the wrong impression thinking a public or state run bank would otherwise be a solution, where of course we both know it wouldn't matter if the bank was public or private the bank still commits the same crime .

    For example the Canadian central bank today is a state run bank but acts & runs as private central bank right?  So there is no difference between public or private banks who merely publish the evidence of our promissory obligations we have to each other, indeed, along with the obfuscation as far as I'm aware banks were publishing the evidence of our promissory obligations even before central banks officially came into existence.

    Here is something I wrote in reply to a comment left on my blog that articulates this further if you haven't already read it yet .
    http://australia4mpe.wordpress.com/#comment-253

    All good & a Great video buddy, well done .

    Dave

  2. i stopped at 2:50 I am confused. I know that the money supply increases each year. dollar bills, coins. I assumed that the interest owed was taken from taxes &/ or the "bonds" (not sure where there value derives) sold to the fed.
    can some1 plz help me?

  3. Whoever did the video is wrong about the legal tender money. Contrary to the popular myth as expressed in the video: Congress has specified that a Federal Reserve Bank must hold collateral equal in value to the Federal Reserve notes that the Bank receives. This collateral is chiefly gold certificates and United States securities. This provides backing for the note issue. The idea was that if the Congress dissolved the Federal Reserve System, the United States would take over the notes (Fed liabilities). This would meet the requirements of Section 411 (Federal Reserve Act), but the government would also take over the assets, which would be of equal value. Federal Reserve notes represent a first lien on all the assets of the Federal Reserve Banks, and on the collateral specifically held against them. ~ Department of the Treasury.

    The "Federal Reserve Note" designator on every dollar is not a mark of ownership, it's a mark of Liability.  All Federal Reserve profits are returned to the Treasury, minus operational expenses.

  4. A simple, well explained video of how we're all being robbed by banks … thanks for creating this video mate.

  5. as times are hard money scarce inflation gets less because people work for less. and since everything is based on labor .the work it took to make goods available its all a game of wait and see

  6. 1) Mathematically, increasing currency supply out of thin air reduces the purchasing power of all existing currency. Hence more dollars required to buy the same thing. Not some parallel universe and no detection required. Its purely math.

    2) You say that privately published representations have to be paid back to private banks at interest. They are SUPPOSED to be paid back at interest. In reality they may not ever pay the full amount. If you rack up more debt than you can possibly pay, then you will not pay that debt. Again, math. If you don't have the money, you can't pay it back…unless you just issue more currency (that should also be paid but, but may not be able to without issuing more currency. Math.

    3) No telepathic power is required to detect. Prices are the proof you are looking for.

    4) Yes, paying interest takes currency out of circulation. But fractional reserve banking generates more than enough currency out of thin air to compensate such that we find the net currency in circulation to be increasing thereby causing higher prices.

    5) You've got your math wrong. You should show the equations if you wish to prove otherwise.

  7. Executive Order 6102 is a United States presidential executive order signed on April 5, 1933, by President Franklin D. Roosevelt "forbidding the Hoarding of gold coin, gold bullion, and gold certificates within the continental United States"

    roosevelt even confiscated gold from americans just to prove there was no gold standard. dollar isnt backed by gold. Its backed by the govts ability to enter your home and confiscate your property.

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