The Real Source of Inflation

Inflation has always been the devil of the fiat-based economy. It is believed that the moment governments turn on the money printing machine, inflation begins to rise. We are told that increases in the money supply always leads to an increase in competition for the available goods and services, which in turn leads to price increases — inflation.

Thus, the more money is made available to an economy, the higher the prices will rise to meet the new demand. In essence, the proverbial philosophy is that an increase in the money supply leads to an increase in consumer demand. People…