Inflation:

Inflation is the expansion of the money supply caused by printing paper money.The more paper money in circulation -the less the pound or dollar is worth which is why when the FEDRES or the BOE inject paper money into the economy by QE* it devalues it and the devalueation is relative to the amount of cash that comes off the printing press.

Banks are also responsible for inflating the money supply by through the practice of Fractional Reserve Lending which means simply that if you deposit 100GBP into your bank account the bank is allowed to lend out 6-8 times that amount which means 800 GBP on top of the initial 100GBP deposit which means the banks has Leverage of 8 times 100GBP.

Nothing else is Inflation.

BBC article on Inflation which does not explain what i have just explained so i am not sure what they are talking about.


http://www.bbc.co.uk/news/business-12196322

There is no other way to cause inflation in principle and what the BBC are talking about is something else entirely although to be fair price hikes effectively take cash out of circulation and your pocket by definition therefore decreasing the money supply which is what happens in a recession as the money supply shrinks.So in reality there is actual deflation in terms of cash in circulation and a recession is a shrinkage of the economy by definition yet we have Inflation which is true in terms of expanding the money supply through QE yet the BBC is dishonestly trying to attribute rising Inflation to something which is a symptom of/related to Inflation rather than the cause of.

If there were not any QE programs going on in a recession with the mass printing of BOE funny money then the pound would go up in value - Deflation - and while there would be less cash in circulation it would buy you more which would mitigate the economic effects to an extent.

The Bankster Mafioso would rather inflate/devalue the money supply during a recession to financially cripple you and to Fuck you over twice as hard ans twice as much.

"What is inflation ?"

Inflation is the expansion of the money supply.

What do you think has happened in Zimbabwe for example ?

The price of a loaf of bread hasnt gone up by 10,000,000 times because of "Inflation"[hypothetical figure for effect] like the BBC would have you believe [which would mean the cost of Wheat and Yeast has gone up in price by 10,000,000 times !!] as it means the Zimbabwean currency has decreased in value 10,000,000 times therefore costing you 10,000,000 times more because of QE which is the mass injection of cash into an economy.

The price of bananas goes up because of inflation ???

The price of bananas has gone up because of inflation because your dollar is worth LESS so it costs MORE to buy a bunch of bananas.

The price of bananas can go up because all the banana boats might sink which means LESS bananas which means they will cost MORE but that is NOTHING to do with Inflation and thats just one example.

Is the cost of services that use Diesel for example since Diesel has gone up in price lately therefore resulting in those services costing MORE ANYTHING to do with expanding the money supply ??

NO it is NOT.

Simple really.

Prices for things are inflated or deflated sure enough but its incredible how a supposedly informative article by the BBC fails to point out what i am pointing out as if it does not exist so it would be less misleading if it was called Price-linked/indexed Inflation*

The price of commodities can go UP or DOWN.

If the price of oil went up by 50 percent then the BOE would increase interest rates to offset the price rise ??

It doesnt make sense ??

But then the cost of everything is going up anyway like Diesel for example YET the pitiful rates of interest from banks NEVER seems to go up yet they dont mind using your cash as leverage for lending.

The cost of living goes UP and Down because of.

NOT to be confused with the expansion of the money supply which is known as INFLATION.The BBC article is deceptive and dishonest and it attempts to remove the issuance of currency out of the equation as the BBC dont want the Proles to know about actual inflation and why their Dollar or Pound is worth less because its obvious that if the Dollar is worth less then goods are going to cost more to produce which in turn costs you more which partly explains why goods and services are costing you more.This is beside the multitude of factors that causes price rises of commodities.

Bankrupt economies print Fiat currency like its a get out of jail free card .[see below]

The BBC article is didingenuous.Typical BBC Disinfo.

Fucking Idiots.

The reason that the BOE/Govt want a low RPI - Retail Price Index [what the BBC call inflation]/Inflation at 2 percent is to keep expenditure down because pensions etc etc are linked to it.

Low interest rates always mean more borrowing because its cheap which means more debt and it also means banks pay out less in interest to those who have surplus cash in the bank so less interest means less spending and more debt means less spending.

*QE doesnt actually inject cash into the economy as it injects cash into the pockets of the Bankster Mafioso so the cash does not go into the economy and into circulation but by default it inflates the money supply because its not as if you the taxpayer is not going to pay interest on it but thats another story.

Trickle Down Economics = you only get the scraps if you are lucky.

QE actually takes more cash out of the economy than it injects into it in the long term because it generates debt as the taxpayer pays interest that is cumulative upon the paper money that is printed by the privately owned Rothschild BOE that is lent to the Govt.

Its easy to see that the only winners are the BOE.

Fucking scamming shit.