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[McDuck]

Yup.
How many auctions did I go to where some wealthy people from a particular country forced up the bidding to levels not usually seen before.
Causing locals to bid more and take out larger and larger mortgages to compete.
Did loose US monetary policy cause greater international money...

[McDuck]

All secondary effects. The only real cause of inflation is a distortion in the dollar to goods ratio... and that's done at the moment of a new of a housing loan creation.. by banks.. and.. well, lets let an expert say it properly..

...

[McDuck]

I guess the first question you need to ask yourself is how much?

How much money is there?

How else are you going to see if it's growing or shrinking?

And since a real paper dollar, (that has already been worked for and saved), will compete with an imaginary loan...

[McDuck]

Yup.
There is a lot of money that just circulates around and around the system.

Forget about thta stuff.

Ask yourself this.

How does money enter and exit the system?

For the purposes of the exercise, you can consider the system as all transactions...

[McDuck]

None of that matters.

Prices are only dependent on the amount of funny money central banks want to throw out into the economy.

Prices are mostly a monetary phenomena.

So then therefore are get rich quick leveraging schemes.

I don't get why both of...

[McDuck]

New "fake: Money is introduced into the system through new bank loans.
When less people can afford the loans, there are fewer loans, and as a result less fake money about.

What is fake money?
What is real money.?

Fake money is money you say you will earn and...

[McDuck]

Just had an idea.

Getting really geeky on this.

Just look at the units of measurement to unravel the trickery.

Inflation = 7% .

So really, that is a short way to say " 7% per year".

In other words it has two parts, the "7"...

[McDuck]

Who know what the FED is choosing to look at.
Or what numbers they want to see change.

But on to this ongoing odd idea of yours about measuring inflation.

Inflation is a living thing.
it moves, it's always changing.

Just as you can't take a photo of...