FACTS #65 – American inflation is NOT a rise in price. It’s the deflation of the dollar.

We can agree…

  1. Most misunderstand inflation to be a rise in prices.  This is wrong.  Inflation is a rise in the amount of dollars it takes to buy the same items.  As the value of the dollar drops so does its purchasing power.
  2. A devalued dollar means the cost of goods don’t increase.  The amount of dollars required for those cost of goods increase.
  3. Appreciation is different than inflation because supply and demand is a more influencing variable.
  4. Quantitative Easing (printing more paper dollars, currency) is a diabolical way to increase the perceived comfort of Americans because in the long run it costs everyone.
  5. Average wages of Americans can only be calculated if the depreciation of the dollar is a variable.  One might make the same amount of money, even more, but the buying power is much less. Inflation.
  6. … Add to this platform with YOUR opinion below…