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    What Is Inflation|Price Inflation Versus Printing Money Inflation According to Wikipedia http://en.wikipedia.org/wiki/Inflation, "inflation" has this definition: "In economics, inflation is a persistent increase in the general price level of goods and services in an 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) feel the greatest economic impact from and is generally what most people mean when they use the term, "inflation," as it results in us spending more and more of our money on 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. Then on same Wikipedia page, the following is also said about inflation: "Economists generally believe that high rates of inflation and hyperinflation are caused by an excessive growth of the money supply." “Excessive growth of the money supply,” 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 of the money supply," will be referred to here as, "circulatory inflation." The mantra that many economists, particularly the so-called Austrian School, have been repeating is that 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. If circulatory inflation existed there. First of all, the government does NOT print money. With the exception of minted coins, all of our 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 they never issue in the first place, it is mathematically impossible for circulatory inflation to exist. Second of all, are we to believe that manufacturers and other business owners possess some magical telepathic power to detect when the the supply of currency has been expanded and then automatically raise their prices to compensate? Is that why prices have been increasing as much as 10% annually? WROONG! Since we have been obligated to pay back these representations of entitlement with interest which is never issued, the inevitable result is, in fact, circulatory DEFLATION. In other words, paying interest on every single unit of currency in circulation causes a DECREASE in the volume of currency. According to http://australia4mpe.wordpress.com/category/what-is-the-root-cause-of-all-inflation/: "...circulatory inflation or even hyperinflation is indeed a mathematical impossibility under any interest based monetary system." So, under the current monetary system, if circulatory inflation is mathematically impossible, then what does cause price inflation? One word: *Interest* Since interest is embedded into every single business transaction in the economy, it is, by and large, the leading driver of increasing prices. In a 2012 debate with Mitt Romney, President Obama said, "It's math, it's arithmetic." http://www.youtube.com/v/aYKKsRxhcro?version=3&start=1043&end=1047&autoplay=1&hl=en_US&rel=0 Barack Obama's 2008 campaign returned a package *unopened* containing mathematic proof that that current system will result in monetary failure, knowing FULLY what the package contained and knowing who it's sender was. And some of you say, "Well, inflation is just fact of l

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    What Is Inflation|Price Inflation Versus Printing Money Inflation According to Wikipedia http://en.wikipedia.org/wiki/Inflation, "inflation" has this definition: "In economics, inflation is a persistent increase in the general price level of goods and services in an 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) feel the greatest economic impact from and is generally what most people mean when they use the term, "inflation," as it results in us spending more and more of our money on 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. Then on same Wikipedia page, the following is also said about inflation: "Economists generally believe that high rates of inflation and hyperinflation are caused by an excessive growth of the money supply." “Excessive growth of the money supply,” 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 of the money supply," will be referred to here as, "circulatory inflation." The mantra that many economists, particularly the so-called Austrian School, have been repeating is that 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. If circulatory inflation existed there. First of all, the government does NOT print money. With the exception of minted coins, all of our 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 they never issue in the first place, it is mathematically impossible for circulatory inflation to exist. Second of all, are we to believe that manufacturers and other business owners possess some magical telepathic power to detect when the the supply of currency has been expanded and then automatically raise their prices to compensate? Is that why prices have been increasing as much as 10% annually? WROONG! Since we have been obligated to pay back these representations of entitlement with interest which is never issued, the inevitable result is, in fact, circulatory DEFLATION. In other words, paying interest on every single unit of currency in circulation causes a DECREASE in the volume of currency. According to http://australia4mpe.wordpress.com/category/what-is-the-root-cause-of-all-inflation/: "...circulatory inflation or even hyperinflation is indeed a mathematical impossibility under any interest based monetary system." So, under the current monetary system, if circulatory inflation is mathematically impossible, then what does cause price inflation? One word: *Interest* Since interest is embedded into every single business transaction in the economy, it is, by and large, the leading driver of increasing prices. In a 2012 debate with Mitt Romney, President Obama said, "It's math, it's arithmetic." http://www.youtube.com/v/aYKKsRxhcro?version=3&start=1043&end=1047&autoplay=1&hl=en_US&rel=0 Barack Obama's 2008 campaign returned a package *unopened* containing mathematic proof that that current system will result in monetary failure, knowing FULLY what the package contained and knowing who it's sender was. And some of you say, "Well, inflation is just fact of l

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    What Is Inflation

    Uploaded by

    MrPeaceAndLiberty
    What Is Inflation|Price Inflation Versus Printing Money Inflation According to Wikipedia http://en.wikipedia.org/wiki/Inflation, "inflation" has this definition: "In economics, inflation is a persistent increase in the general price level of goods and services in an 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) feel the greatest economic impact from and is generally what most people mean when they use the term, "inflation," as it results in us spending more and more of our money on 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. Then on same Wikipedia page, the following is also said about inflation: "Economists generally believe that high rates of inflation and hyperinflation are caused by an excessive growth of the money supply." “Excessive growth of the money supply,” 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 of the money supply," will be referred to here as, "circulatory inflation." The mantra that many economists, particularly the so-called Austrian School, have been repeating is that 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. If circulatory inflation existed there. First of all, the government does NOT print money. With the exception of minted coins, all of our 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 they never issue in the first place, it is mathematically impossible for circulatory inflation to exist. Second of all, are we to believe that manufacturers and other business owners possess some magical telepathic power to detect when the the supply of currency has been expanded and then automatically raise their prices to compensate? Is that why prices have been increasing as much as 10% annually? WROONG! Since we have been obligated to pay back these representations of entitlement with interest which is never issued, the inevitable result is, in fact, circulatory DEFLATION. In other words, paying interest on every single unit of currency in circulation causes a DECREASE in the volume of currency. According to http://australia4mpe.wordpress.com/category/what-is-the-root-cause-of-all-inflation/: "...circulatory inflation or even hyperinflation is indeed a mathematical impossibility under any interest based monetary system." So, under the current monetary system, if circulatory inflation is mathematically impossible, then what does cause price inflation? One word: *Interest* Since interest is embedded into every single business transaction in the economy, it is, by and large, the leading driver of increasing prices. In a 2012 debate with Mitt Romney, President Obama said, "It's math, it's arithmetic." http://www.youtube.com/v/aYKKsRxhcro?version=3&start=1043&end=1047&autoplay=1&hl=en_US&rel=0 Barack Obama's 2008 campaign returned a package *unopened* containing mathematic proof that that current system will result in monetary failure, knowing FULLY what the package contained and knowing who it's sender was. And some of you say, "Well, inflation is just fact of l

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
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    of 33

    What Is Inflation?

    Price Inflation Versus Printing Money Inflation

    Price Inflation
    According to Wikipedia http://en.wikipedia.org/wiki/Inflation, inflation has this definition: In econo!ics, inflation is a persistent increase in the general price le"el of goods and ser"ices in an econo!y o"er a period of ti!e.

    Price Inflation
    We will call this definition, price inflation. It is, to #e sure, what the "ast !a$ority %the #otto! &&.&&&&' of us( feel the greatest econo!ic i!pact fro!

    Price Inflation
    and is generally what !ost people !ean when they use the ter!, inflation, as it results in us spending !ore and !ore of our !oney on less and less goods and ser"ices.

    Price Inflation
    Price inflation ro#s us of the wealth that we create and results in a lower )uality of life for e"ery#ody #ecause it di!inishes our a#ility to freely participate in co!!erce with each other.

    *Printing Money+
    ,hen on the sa!e Wikipedia page, the following is also said a#out inflation: -cono!ists generally #elie"e that high rates of inflation and hyperinflation are caused #y an e.cessi"e growth of the !oney supply.

    *Printing Money+
    *-.cessi"e growth of the !oney supply,+ is generally what econo!ists are referring to when they use the ter! inflation.

    ,he /istinction
    0ince it is all too co!!on to apply these two concepts interchangea#ly, and confusingly, to the ter!, inflation, we will !ake a distinction #etween the two concepts here.

    ,he /istinction
    As noted earlier, an increase in prices will #e referred to here as, price inflation. -.cessi"e growth of the !oney supply, will #e referred to here as, circulatory inflation.

    Austrian 0chool /e#unked


    ,he !antra that !any econo!ists, particularly the so1called Austrian 0chool, ha"e #een repeating is that price inflation is the direct result of circulatory inflation, or #y the go"ern!ent printing too !uch !oney.

    Austrian 0chool /e#unked


    It sounds good on paper, right?

    Austrian 0chool /e#unked


    In theory, circulatory inflation 2could2 cause price inflation.

    Austrian 0chool /e#unked


    In so!e parallel uni"erse.

    Austrian 0chool /e#unked


    If circulatory inflation e.isted there.

    Austrian 0chool /e#unked


    3irst of all, the go"ern!ent does 45, print !oney.

    Austrian 0chool /e#unked


    With the e.ception of !inted coins, all of our currency is issued #y pri"ately held #anks at I4,-6-0,.

    7urrency Issuance
    0ince all of these pri"ately1pu#lished representations %which we call currency( ha"e to #e paid #ack to pri"ate #anks at interest, which is paid along with the principal out of circulation, it is mathematically impossible for circulatory inflation to e.ist.

    8usinesses As Psychics
    0econd of all, are we to #elie"e that !anufacturers and other #usiness owners possess so!e !agical telepathic power to detect when the the supply of currency has #een e.panded and then auto!atically raise their prices to co!pensate?

    8usinesses As Psychics

    Is that why prices ha"e #een increasing as !uch as 9:' annually?

    It;s Math<
    0ince we ha"e #een o#ligated to pay #ack these representations of entitle!ent with interest out of circulation, the ine"ita#le result is, in fact, circulatory /-3=A,I54.

    It;s Math<
    In other words, paying interest on e"ery single unit of currency in circulation causes a DECREASE in the volume of currency.

    It;s Math<
    According to http://australia>!pe.wordpress.co!: ...circulatory inflation or e"en hyperinflation is indeed a !athe!atical i!possi#ility under any interest #ased !onetary syste!.

    0o Why /o Prices ?o @p?


    0o, under the current !onetary syste!, if circulatory inflation is !athe!atically i!possi#le, then what does cause price inflation?

    0o Why /o Prices ?o @p?


    5ne Word:

    0o Why /o Prices ?o @p?

    2Interest2

    0o Why /o Prices ?o @p?


    0ince interest is e!#edded into e"ery single #usiness transaction in the econo!y, it is, #y and large, the leading dri"er of increasing prices.

    Presidential Ironies
    In a A:9A de#ate with Mitt 6o!ney, President 5#a!a said: *It;s Math. It;s Arith!etic.+

    Presidential Ironies
    8arack 5#a!a;s A::B ca!paign returned a package 2unopened2 containing !athe!atical proof that the current interest1#ased syste! will result in monetary failure, knowing FULLY what the package contained and knowing who it;s sender was.

    Presidential Ironies

    8ut that is a topic for yet another "ideo.

    What Is Inflation?

    And so!e of you say, Well, inflation is $ust fact of life.

    What Is Inflation?
    Visit:
    People for Mathe!atically Perfected -cono!y

    https://www.face#ook.co!/groups/pf!peA:9A/

    3ace#ook Page And Ask Cuestions<

    What Is Inflation?

    And so!e of you say, Well, inflation is $ust fact of life.

    ,hanks 3or Watching<


    Please =ike 3a"orite 0u#scri#e And 8y ?olly...

    0DA6-<

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