TSI editor’s note: Alasdair Macleod of GoldMoney recently made an appearance on the Liberty and Finance Youtube channel with Dunagan Keiser, and Macleod gives a master class on the subject of inflation. Macleod makes it clear that inflation by definition is currency creation, and that the effect is rising prices. Macleod states that, “I think the way that inflation is presented is very very confusing for the general public in trying to understand what is happening. And it conceals actually what is happening to money. It is not prices rising, it is the purchasing power of the money falling.”
For those interested, this is what John Maynard Keynes said about inflation: “By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. By this method they not only confiscate, but they confiscate arbitrarily; and, while the process impoverishes many, it actually enriches some.” – The Economic Consequences of the Peace by John Maynard Keynes, 1919. pp. 235-248.