A Case For Inflation

Inflation is always a monetary phenomenon. Now we are in a period of deflation, with falling prices. Government will do what it feels it has to do to fight deflation, because deflation is synonymous with depression, like in the 1930s. But the only way they know how to solve a problem like this is to throw money at it. The amounts are in the trillions; nothing is like it in all of history. If all of this newly created money does not cause inflation, it will be the first time in the history of fiat money that inflation has not resulted. Based on the lessons of history, that's the way to bet. Further reading ...