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So inflation is good? Just so we know what inflation is, let us define it.

First, what it is not. Inflation is not an increase in the price of goods and services.

Secondly, the correct definition of inflation is the following. Inflation is an increase in the money supply, period. An increase in the money supply by private central banks printing fiat currency such as dollars, euros, etc. An increase in the money supply causes prices to rise because of more money chasing fewer goods. When there is no increase in productivity, prices rise due to scarcity as more money is chasing fewer goods. Just look at Venezuela.

So now they are telling us there is no inflation and that is bad. But when there is inflation, that is also bad. They can have it both ways? Sure, that is what the banks and governments want.

Let us look at oil; the price has dropped because of increased production. The same amount of money is chasing more goods so prices drop. So ladies and gentlemen, there you have it, the real definition of inflation. Supply and demand, Adam Smith had it right.

If the money supply is being increased and prices are not, then money is being hoarded or being siphoned off somewhere else.

There are an increasing number of stories of gold being hoarded.

Maybe the fiat currency is being used to purchase even more worthless pieces of paper that we often refer to as stock certificates.

But when those stock certificates are shown to be about as valuable as tulip bulbs...