Inflation results from policies implemented by governments, commercial banks and central banks.

A Few Consequences

Gary Christenson – More currency placed into circulation devalues all currency units. We can thank fractional reserve banking, deficit spending and QE.

1- Stock markets rise as each currency unit buys less.

2- Commodities rise in price.

3- Incomes, taxes, debt and government expenditures rise.

4- Politicians spend more currency units as they reward friends and buy votes.

5- The wealthy become richer and the poor and middle class suffer as prices rise while wages stagnate. More stagflation is coming in 2018 – 2020.

6- Inflation discourages savings and encourages spending and debt creation.

Examine official national debt and M3 currency in circulation at ten year intervals on a log scale for a big-picture perspective. Continue reading →