[RobRoy]

Textbook wise, it’s inflation.

Meanwhile, my son has lived in the same apartment complex for two years now. His monthly rent is $1,100. The leasing company sent him a renewal notice saying that if he will sign a new 1 year lease, his monthly rent will go down to $800 a month.

Most people see that as deflation. They may have their labels goofed up, but a rose by any name...

[himno hero]

Fact wise.... its the thing that stability is not made of.

Most, just like on this board do not know inflation or deflation and will temper their expectations for that.

Business cannot function unless there is stability. No one can make long range plans in such and environment.

[ignorancerunsrampant]

Text book wise? In the public school system it is part of the inflation equation. Inflation was always said to be too much money chasing too few goods. There is no such thing as too few goods any more. Now we have 2.4 Billion Chinese and Indians who will produce anything that you want for a nickle and a bowl of rice a day.

So, what is inflation?

Inflation is the velocity of money [or the rate of speed which money changes hands]. If the fed prints a trillion dollars and it just sits in the vault it has zero effect on prices. On the other hand, if the fed could get that money into circulation we would have massive inflation. The fed has printed the money, that is the easy part. The hard part is getting the money to circulate. The banks do not want to lend, and nobody is credit worthy enough to borrow.

NO INFLATION!