Fiat money, inflation and “liquidity”
This blog entry has nothing to do with photography...or does it? Why is Canon increasing US prices? (Leica has already done so, numerous others can’t be far behind). Are the higher prices due to “inflation*”, a mysterious force that even the Federal Reserve struggles to comprehend?
Today’s brutal financial environment makes The Creature From Jekyll Island—A Second Look at the Federal Reserve more relevant than ever. If you think “inflation” is some mysterious force of nature or simply “higher prices”, then cure that profound ignorance today*—learn how your money is steadily embezzled. It is not an accident that Creature is not mandatory reading for college students today (I wish it had been for me). And it’s just as relevant for those using a currency other than the US dollar.
* Inflation is an expansion of the money supply, often leading to higher prices (the law of supply and demand also moves prices). An increase in the money supply beyond the real wealth being created results in more paper money chasing the same goods, hence higher prices eg a currency worth less and less in terms of gold, oil, camera equipment. Only the government has the power to inflate (increase) the money supply, eg running the real or electronic currency printing presses.
