Saturday, March 10, 2012

What is the Real (Idiotic) Definition of Inflation?

Perhaps there is no other effective government strategy to keep people from realizing the truth other than twisting the real definition of inflation.

The current definition of inflation so prevalent today is: rise in prices of goods and services (as caused by some economic factors, like money supply).

Interestingly, that's not the original definition. For a long time since the earliest definition of inflation, it was well accepted that the meaning is the increase in money supply, which results to rise in commodity prices and decrease in the purchasing power of money.