Libertad

Evidence That Big Inflation Is Coming

This is a rather simple matter....

Monetary velocity, deflation, inflation, money supply, money printing....are all attempts to categorize and quantify future expectations....

The reality is that there is not a true measure readily available that gives the information that is required as to how money will be spent....

A simple example would be Person1....

Person1 has $100,000....

Later on the same $100,000 is reduced in value because the money stock was diluted in value....10x the money was printed....and thus the previous $100,000 becomes 1/10 the value what it was before....

However....if 10% of whatever is available is spent....the economy will be valued as it relates to the 10% spent....

If 20% is spent....then the economy becomes worth more....because 2x the cash is moving to other labels within the economy....

So what matters is 1) what is available 2) what is spent

Futhermore....money either stays or leaves the local economy.....Money leaves to other economies if imports are bought....and stays in the economy if domestic production is bought....

Thus a country can have a depression if no money is spent....regardless
of savings levels....money printing, etc...

Also....if there is very little savings....then the choice of spending is very clear....