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Sorry people but I have to get this out of my chest.
No matter how much money is created you don't get inflation until you hit a bottleneck in the resource the money is trying to buy.
Inflation is created because RESOURCES are scarce not because money is plentiful.
Example
No matter how much money is created you don't get inflation until you hit a bottleneck in the resource the money is trying to buy.
Inflation is created because RESOURCES are scarce not because money is plentiful.
Example
If all people want to buy is digital goods, no matter how many money one prints there is no inflation because digital goods can be infinitely reproduced.
If everyone can buy tomatoes at $10/kg and there is an infinite supply, no matter how much money exists inflation will not.
If everyone can buy tomatoes at $10/kg and there is an infinite supply, no matter how much money exists inflation will not.
However if there is only one tomato available and we are starving no matter how much the supply of money is restricted, there will be inflation.
Inflation is not about money but about the relationship between money and FINITE resources.
Inflation is not about money but about the relationship between money and FINITE resources.
Sorry for the rant on what is a very, very basic thing but I get tired of hearing "high-level" conversations about "hard money", "soft money", crypto, gold, central banks get derailed badly because people can't keep simple basic concepts in sight.
