Inflation
Inflation is the creation of extra money. When central banks do this,
the money supply is said to be inflated.
When the amount of money in circulation increases with respect to the goods and services available,
traders increase prices to restore supply and demand. Over time, the word
Inflation has come to be associated with this increase in prices.
There is little mystery about the process, in spite of some media reports to the contrary.
 | "Every Congressman, every Senator knows precisely what causes inflation... but can't (sic.) support the drastic reforms to stop it because it could cost him his job." Robert A. Heinlein, Expanded Universe |
All centralised money systems have a single point of control.
The privileged position of central bankers gives them a chance to
can inflate and contract the money supply to create the business
cycle of booms and bust. This provides a subtle but effective means to transfer
a lot of resources (when the stockmarket crashes, and cash starved individuals
or business are forced to sell up quickly). The
anonymity of the market provides the individuals responsible
with a quite effective insulation from the consequences
of their manipulation.
"By this means government may secretly and unobserved, confiscate the wealth of the people, and not one man in a million will detect the theft." John Maynard Keynes, The Economic Consequences of The Peace
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| Downloads | Title | Author(s) | Date |     |  AE204 - Avoiding Centralised Money | Robin Upton | 2005-10-01 |
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Shelling Out - The Origins of Money
How Money is Created
The Great Cookie Jar - Taking The Mysteries Out Of The Money System
Money Downloads