I'm not sure where this should go, but I'm confused as to how inflation and deflation of currency works. Can someone enlighten me 
Inflation/Deflation
- Thread starter ClazzD
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It's basically like this,
Money is printed by the Federal Reserve, which is a Private Company.
This company bought out all the banks and got in with government officials, started wars with money, and used the ecconomic system in conjunction with the governments to eradicate and enslave most of the human race.
Most countries just owe money to the Federal Reserve, it is an invisible number which has no substance. USA is supposebly 15 trillion dollars in debt, which means this country is owned by the Reserve, a private corporation that is only interested in your value as a worker or investment...
Because the money is worthless, it means that humans are the real value... human life.. so they decided human beings are worth money and started paying them these imaginary dollars and conditioning them with an education system that brainwashed them into supporting this economic system which only perpetuates slavery.
IN OTHER WORDS, THE ENTIRE ECONOMIC SYSTEM IS A TRAP DESIGNED TO LIMIT YOUR CONSCIOUSNESS, AND MAKE YOU STUPID
(a polite way of saying you are tricked into forgetting your infinite nature of love)
When you use money, you allow the Federal Reserve to continue it's blood soiled regime and to capitalize off of war and the death of nature.
Money is equatable to spilled blood these days, when some of the highest paying jobs are private companies hiring mercenaries, often paid by governments and high profit corporations to protect investments and eradicate opposition. Considering most of your water rights are owned by monarchs, your world is fair-game at this point for any sort of mass slaughter or destruction, so the economy is perhaps the least of your worries in the coming years... I'd be much more concerned about the pollution of water, the monarch control regime, corporate brainwashing, and the desecration of one/third of all living species in the past 100 years, which has already resulted in the loss of most of our inhabitable world until we learn how to play nice together and love one another again, and pay attention to the things that matter in life like supporting community and the restoration of the natural world, healing ourselves and one another.
Inflation occurs when fat investors decide to manipulate the economy, which often results in insurmountable human suffering and the destruction of the natural world, including the desecration of spiritual reality...
Investors make poor choices, and the whole world suffers because people are sleeping, wake up from the dream of slavery and liberate consciousness!
all beings are liberated sentient Infinity, moksha!
READ MORE http://sacredbreathlodge.net76.net/spiritrising/spiritrisingweb.htm#11
Money is printed by the Federal Reserve, which is a Private Company.
This company bought out all the banks and got in with government officials, started wars with money, and used the ecconomic system in conjunction with the governments to eradicate and enslave most of the human race.
Most countries just owe money to the Federal Reserve, it is an invisible number which has no substance. USA is supposebly 15 trillion dollars in debt, which means this country is owned by the Reserve, a private corporation that is only interested in your value as a worker or investment...
Because the money is worthless, it means that humans are the real value... human life.. so they decided human beings are worth money and started paying them these imaginary dollars and conditioning them with an education system that brainwashed them into supporting this economic system which only perpetuates slavery.
IN OTHER WORDS, THE ENTIRE ECONOMIC SYSTEM IS A TRAP DESIGNED TO LIMIT YOUR CONSCIOUSNESS, AND MAKE YOU STUPID
(a polite way of saying you are tricked into forgetting your infinite nature of love)
When you use money, you allow the Federal Reserve to continue it's blood soiled regime and to capitalize off of war and the death of nature.
Money is equatable to spilled blood these days, when some of the highest paying jobs are private companies hiring mercenaries, often paid by governments and high profit corporations to protect investments and eradicate opposition. Considering most of your water rights are owned by monarchs, your world is fair-game at this point for any sort of mass slaughter or destruction, so the economy is perhaps the least of your worries in the coming years... I'd be much more concerned about the pollution of water, the monarch control regime, corporate brainwashing, and the desecration of one/third of all living species in the past 100 years, which has already resulted in the loss of most of our inhabitable world until we learn how to play nice together and love one another again, and pay attention to the things that matter in life like supporting community and the restoration of the natural world, healing ourselves and one another.
Inflation occurs when fat investors decide to manipulate the economy, which often results in insurmountable human suffering and the destruction of the natural world, including the desecration of spiritual reality...
Investors make poor choices, and the whole world suffers because people are sleeping, wake up from the dream of slavery and liberate consciousness!
all beings are liberated sentient Infinity, moksha!
READ MORE http://sacredbreathlodge.net76.net/spiritrising/spiritrisingweb.htm#11
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wow, just read Ughster's bat-sh*t-crazy response. don't listen to 90% of what he said.
inflation can be defined as a rising general price level. this is usually measured by the CPI, a basket of consumer goods (milk, TV's, sugar etc).
inflation can occur for many reasons. one of the major reasons is when the government prints money. they do this to increase the money supply in a nation-> which lowers the interest rates in a country. with lower interest rates businesses and entrepreneurs are more inclined to save less, and borrow more to invest in the nation's businesses and infrastructure. in the short run this should lead to rising output levels, and hopefully pull and economy out of recession. eventually it can be shown using the ADAS model, in the long run printing money only results in inflation and no real change in the long-run GDP level- so it can be argued it's only useful in the short run, but politicians usually don't think too far ahead as election cycles typically are only 3-4 years long.
why would a government print money? for a variety of reasons, mainly because the economy is in the downturn of a business cycle or a recession. it is thought by keynesian economists (who support government intervention in the marketplace) that by increasing the money supply in bad times, this will increase aggregate demand (AD). AD is the sum of all demand for products in an economy. when this rises, businesses will be able to sell more products at a higher price to consumers who now have the extra funds to purchase them. this lifts the overall GDP level of the country, in the short run. they could also print money in order to receive seigniorage. this is when they can make money by issuing their own currency (no interest rate) and purchasing interest bearing debt (i.e. bonds).
inflation can be also caused by supply shocks, for example the rising oil prices in the 70's. because the price of an important raw material in the production process of many items has increased so much, the AS (aggregate supply curve) will decrease. this decrease in supply will lead to higher prices (inflation) and a lower production level (a probable recession).
hope that helps, any questions don't hesitate to ask. by the way, were you actually wanting to know about currency appreciation/depreciation or about inflation/deflation?
inflation can be defined as a rising general price level. this is usually measured by the CPI, a basket of consumer goods (milk, TV's, sugar etc).
inflation can occur for many reasons. one of the major reasons is when the government prints money. they do this to increase the money supply in a nation-> which lowers the interest rates in a country. with lower interest rates businesses and entrepreneurs are more inclined to save less, and borrow more to invest in the nation's businesses and infrastructure. in the short run this should lead to rising output levels, and hopefully pull and economy out of recession. eventually it can be shown using the ADAS model, in the long run printing money only results in inflation and no real change in the long-run GDP level- so it can be argued it's only useful in the short run, but politicians usually don't think too far ahead as election cycles typically are only 3-4 years long.
why would a government print money? for a variety of reasons, mainly because the economy is in the downturn of a business cycle or a recession. it is thought by keynesian economists (who support government intervention in the marketplace) that by increasing the money supply in bad times, this will increase aggregate demand (AD). AD is the sum of all demand for products in an economy. when this rises, businesses will be able to sell more products at a higher price to consumers who now have the extra funds to purchase them. this lifts the overall GDP level of the country, in the short run. they could also print money in order to receive seigniorage. this is when they can make money by issuing their own currency (no interest rate) and purchasing interest bearing debt (i.e. bonds).
inflation can be also caused by supply shocks, for example the rising oil prices in the 70's. because the price of an important raw material in the production process of many items has increased so much, the AS (aggregate supply curve) will decrease. this decrease in supply will lead to higher prices (inflation) and a lower production level (a probable recession).
hope that helps, any questions don't hesitate to ask. by the way, were you actually wanting to know about currency appreciation/depreciation or about inflation/deflation?
freshwater4
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ughster's response is what cult wants you to believe.
Snatchmasta
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Inflation isn't necessarily a bad thing. Wages etc are corrected for inflation. Y'all should be worried about a drop in purchasing power rather than low level inflation.
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eh? inflation results in a loss of purchasing power...
source:
and yeah it's only not a bad thing if you previously borrowed money, but the lender or the investment community (who provide the capital for the entrepreneurs) is disadvantaged.
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FYI many of you are heavily off topic, he asked about the fluctuation of currency, not inflation/deflation in an economy, don't confuse the guy lol.
many many things influence the fluctuations of exchange rates.
I think the most simple way to understand how it may change would be, anything that increases the supply/availability of a currency will cause it's value to fall. Vice versa.
EG: I live in the UK and our government is currently undergoing quantitative easing, which is basically the buying up of bonds(not liquid), effectively printing money, which can most definitely be said to depreciate a currency because it increases the supply of the currency. Expectations also play a big factor in this. The money market is a huge market, full of investors. Doesn't take much of a brain to know which currency to buy tbh, just gotta have the money to do it xD
many many things influence the fluctuations of exchange rates.
I think the most simple way to understand how it may change would be, anything that increases the supply/availability of a currency will cause it's value to fall. Vice versa.
EG: I live in the UK and our government is currently undergoing quantitative easing, which is basically the buying up of bonds(not liquid), effectively printing money, which can most definitely be said to depreciate a currency because it increases the supply of the currency. Expectations also play a big factor in this. The money market is a huge market, full of investors. Doesn't take much of a brain to know which currency to buy tbh, just gotta have the money to do it xD
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