okay, but who raised prices so that your 1/1000 could not buy as much?
the individual assessment of your fiat money may be 1/1000 of the ‘gold bar’, yet unless something else happens there is nothing that would cause prices to rise.
I can’t get past the idea of scarcity and demand being the cause of rising prices other than government interference in supply through bad policy or war.
the simple presence of more cash being printed, that me and you have no access to, doesn’t make me or you spend it, we don’t have it, yet according to thoughts here, that makes it value fall while it’s unavailability to us should make it rise.
It is not clear to me, there has to be other connections to the printing of money and I am sick of hearing the cliches about how it causes inflation, it is missing a step
THINK: AUCTION. Goods that become scarce, especially food and energy related goods, demand a higher price from those that need them and they go to the highest 'bidder' for those goods. Prices will continue to rise until the 'bidders', i.e. consumers, are unwilling or unable to pay that price.
Ever see a chemical equation that goes both ways? Both sides of the equation can push the reaction in one direction if one sides ends up with more. The molecules involved can’t see the big picture. They merely see more of x than y and then react until the natural ratio between the two occurs again. You mentioned supply and demand. Why does money itself get to be exempt from this law? Part of the confusion is the time it takes for the system to reach equilibrium. Under most inflation rates it takes about 18 months before equilibrium is reached.