I already made my point that money (economics) is a myth.....
I should of added that money is doled out only what is required to keep the population under control and off the streets. Sometimes food price inflation is a deliberate way to redistribute money, as an example.
Money does grow on trees, but only in Upper Class neighbourhoods.
Inflation is caused by circumstances. Some caused by external forces and other examples by external forces. Historically, some examples happened while the world was on the gold standard and others while under Bretton Woods and more recently the fractional reserve currency.
“Moderate inflation in the short run – say 6 per cent for two years ... inflation is an unfair way of effectively writing down all non-indexed debts in the economy. … But it would significantly ameliorate the problems, making other steps less costly and more effective.”
--Kenneth Rogoff, Harvard economist (December 2008)--
“A budget deficit is inflationary if, and only if, it is financed in considerable part by printing money.”
--Milton Friedman (1912-2006), American economist--
“Inflationism ... is not an isolated phenomenon. It is only one piece in the total framework of politico-economic and socio-philosophical ideas of our time. Just as the sound money policy of gold standard advocates went hand in hand with liberalism, free trade, capitalism and peace, so is inflationism part and parcel of imperialism, militarism, protectionism, statism and socialism.”
--Ludwig von Mises (1881-1973), Austrian economist, On the Manipulation of Money and Credit, p. 48--
“Inflation and credit expansion, the preferred methods of present day government openhandedness, do not add anything to the amount of resources available. They make some people more prosperous, but only to the extent that they make others poorer.”
--Ludwig von Mises (1881-1973), Austrian economist, Bureaucracy p. 84--
“Inflation is the fiscal complement of statism and arbitrary government. It is a cog in the complex of policies and institutions which gradually lead toward totalitarianism.”
--Ludwig von Mises (1881-1973), Austrian economist, The Theory of Money and Credit, p. 468--
"The inflationism of the currency systems of Europe has proceeded to extraordinary lengths. The various belligerent Governments, unable, or too timid or too short-sighted to secure from loans or taxes the resources they required, have printed notes for the balance."
--John Maynard Keynes (1883-1946), British economist, (The Economic Consequences of the Peace, 1919)--
"There are three kinds of lies: lies, damned lies, and statistics."
--Mark Twain, (1835 - 1910)--
“The Cost of Living [has been] replaced by the Cost of Survival. The old system told you how much you had to increase your income in order to keep buying steak. The new system promised you hamburger, and then dog food, perhaps, after that.”
--John Williams, private economist--
“The consumer price index is being understated by at least 1 percent per year.”
--Bill Gross, professional investor--
"In reality, the right uses government all the time to advance its interest by setting rules that redistribute income upward."
....
"To take the most obvious example: fighting inflation has come to be seen as the holy grail of central banks – a policy that it is supposed to be outside of the realm of normal political debate. On slightly more careful inspection, the inflation-fighting by the Fed and other central banks is actually a policy that is designed to ensure that the wages of ordinary workers do not grow too rapidly.
When central banks jack up interest rates to tame inflation, the CEOs at Goldman Sachs and JP Morgan won't be out on the street. The people who lose their jobs will be factory workers, store clerks and other less privileged workers. Raising unemployment among the group of less educated workers keeps their wages down. In other words, controlling inflation is about making sure that the wages of less educated workers don't rise relative to the wages of more educated workers. And the central banks have a licence to push as hard as they like in this direction."
--Dean Baker, The real effect of 'Reaganomics', February 07, 2011--
http://www.guardian.co.uk/commentisfree/cifamerica/2011/feb/07/ronald-reagan-republicans
