Crash Course Chapter 4: INFLATION

If you can understand inflation, you have a shot at understanding how the world works, and where it’s heading economically.

Unfortunately, inflation is almost never taught properly in schools, if at all, and it’s mischaracterized in the press, over and over again.

They all keep talking about inflation as “rising prices” when it’s actually “falling money.” That is money that’s losing its purchasing power.

Once you can make this mental flip – from rising prices to falling money – you are in a better position to resolve what’s actually happening in the world.

And that thing that’s happening is the same thing it’s always been; people in power preferring to steal from everyone quietly and mischievously rather than having to be direct and explain themselves and why they want your money handed over to their latest goobermint boondoggle.

Because that’s what inflation is – a hidden tax.

It steals from the many to pay for the errors of the few. It secretly and silently removes purchasing power from everybody’s savings every single day.

It’s the most regressive tax there is and, based on that, you’d think that various champions of the poor and the downtrodden would be up in arms about the true source of all that regressive hardship. But they are not. They are nearly stone silent on the matter which means their true aims and concerns are not as stated.

Might as well be a gardener who cries about the effect of a drought on their plants but refuses to turn on the hose to water them. Maybe it’s not actually about the plants after all…

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This is a companion discussion topic for the original entry at

0% Interest Rates

I was just wondering, but maybe I don’t completely understand it if the Fed was keeping interest rates at 0% for those years, does that mean there was no inflation?

I always thought the 0% was just a way to keep the communist democrat Obammy in good stead with voters since the economy of business likes to expand without borrowing costs. Live for the present, there will be plenty of other things to worry about in the future.

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Thank you for your unbiased, well-informed comment that helps advance everyone’s understanding of the issues at hand. you are a beacon of light in a dark time. /s

Inflation 4

I am studying my copy of The Crash Course revised and it is a pleasure to read. I agree with everyone who comments on the thoughtful work that has refined the concepts so that they are easy to understand.
So now your Debt Ceiling is raised a few notches (so is ours…Australia) It can’t last. Making preparations for a sudden return to the early 20th century is a good idea. I’m 81 and I remember late 1940s to 1960s. It was an optimistic and energetic time. (Does it need a war)? You can be proud of the Marshall Plan! It gave so many countries a good start.
Two things that win no votes! 1Preparing a good defence against the inevitable tyrants. 2Taking the economic medicine now to save our children and grandchildren from turmoil.
Our inflation is 7%. Our government does tricks with language. Temporarily down to 6 heralded inevitable reduction. And unfortunately spending has no reduction.

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There was plenty of inflation.
Those zero % rates went mainly to the insiders and financial speculators who were able to borrow and lever up and buy all sorts of things.,
Remember, inflation is everywhere and always a monetary phenomenon.
Corollary: Inflation happens where the money goes.
The money went to the rich.
What sorts of things do the rich buy?

  • Stocks
  • Bonds
  • Penthouse suites in desirable cities
  • Large gemstones
  • Private jets
  • Yachts
  • Fancy-pants art
All of those things inflated enormously during the Fed's zero percent rate party. The Fed said zippo - nada - zilch - during that entire time about any of this. To the FEd there are no social ills when the rich are getting richer and spending money on rich person things. But the very minute the average person 'gets a taste?' That's when the Fed hand-wringing immediately begins:


If the Fed kept interest rates at 0% for those years, does that imply there was no inflation? Perhaps I don’t fully grasp the concept. free games