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View Full Version : whats inflation or rise of prices?



raaaid
02-16-2008, 06:04 AM
as i see it inflation happens as the amount of paper money grows but the goods as gold remains the same

so inflation happening implies somebody is making more paper money, double inflation double paper money than there were before that someone made

is this correct? could it be that inflation is due to the forgery of money by federal reserve of money

SlowBurn68
02-16-2008, 05:03 PM
Correct - Too much money in circulation chasing too few goods. Yes - when the fed (which is just a cartel of large private banks) calls for an infusion of cash to prevent runs on banks (that they own) and boost confidence in the market (like they just did to stem off subprime fears) the US mint just prints the money out of thin air and that causes higher inflation.

We no longer have a gold standard that our currency is backed by - we now have a fiat monetary system: http://en.wikipedia.org/wiki/Fiat_currency .

Friendly_flyer
02-17-2008, 01:08 PM
Gold is going up and down too. The last month or so gold has been up.