Inflation is always bad despite what the government is telling you and only Government can cause inflation because government is the exclusive producer of money. When government buys gold and prints money based on the gold; that’s called a gold standard; there is no inflation but when government prints money without buying gold the money is worthless and when it’s released for circulation it causes the value of the money to decrease the money is devalued; the money is worth less and the decrease in value is inflation. If government borrows money the amount of money in circulation decreases which causes an increase in the value of the money but when government spends the borrowed money the spending offsets the defaltion and simultaneously the value of the money is decreased whihc is inflation. That’s the mechanism that causes inflation. Today, one dollar from 1940 has decreased in value to 4.7 cants, a loss in value of 95.3%. If you had saved $1,000,000.00, one million dollars in 1940 it would be worth $47,170 dollars today, a loss of $952,830 dollars. At 5% interest your money would double every 14.7 years but each year inflation would devalue and decrease both your $1 million and interest earnings. your principal would decrease and the money you would earn from interest wold be defreased too million and the ea=interest earnings would decrease th net value of your money
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