Sunday School: Inflation
Last week I taught you about the regression theorem, which the kooks say explains why a piece of paper that says “Federal Reserve Note” has value.
So without any hard assets such as gold or silver to restrain them, the Federal Reserve can now print as many Federal Reserve Notes as necessary. This helps the bankers (and therefore everyone via the voodoo that is stimulus) and also helps fund our military humanitarian missions in Iraq, Afghanistan, Syria, Libya, Pakistan and (soon) Iran.
The inevitable result is that there are more dollars in circulation:
So as you can see there are slightly more dollars in circulation each year. And what happens when the supply of a good increases? The value goes down.
So each year you can buy less with a Federal Reserve Note than you could the year before.
That is inflation.
So each person (especially those barely getting by in the first place) can buy less and less with their salary and savings of United States Dollars. But this is a small price to pay for the privilege of helping the aforementioned bankers and our military humanitarian missions in Iraq, Afghanistan, Syria, Libya, Pakistan and (soon) Iran.
Therefore inflation is good.