> Also: inflation is NOT fundamentally about price changes. Inflation is purely the result of arbitrary expansion of government fiat money supply. What's more

> Also: inflation is NOT fundamentally about price changes. Inflation is purely the result of arbitrary expansion of government fiat money supply. What's more important is what the money is doing; having just a pile of money tells you nothing. Cullen Roche has a good explanation: > But also – why do so many people insist that inflation is an increase in the money supply? This makes zero sense. Here’s why – our economy is mostly a credit based economy. So, if I take out a loan for $100,000 then the money supply has technically increased by $100,000. But what if I don’t actually tap that loan? What if I borrow the money because, for instance, house prices just went up 25% and I want to have some cash around for emergencies? This doesn’t tell us anything about prices, living standards or really anything. But this is what so much of the money supply represents – money that has been issued and is just sitting around unused. Why is this useful? It’s like calculating your weight changes by counting how much food you have in your refrigerator. No. That’s potential calories consumed and potential weight gain. The amount of food in your fridge tells you little about your future weight changes just like the amount of money in the economy tells us little about the actual price changes in the economy. * https://www.pragcap.com/three-things-i-think-i-think-i-see-dead-mutual-funds/ https://www.pragcap.com/three-things-i-think-i-think-i-see-d... Japan's money supply has constantly gone up over the last few decades and it has seen deflation more than once during the same time period: * https://fred.stlouisfed.org/graph/?g=1680i https://fred.stlouisfed.org/graph/?g=1680i