Inflation is not about prices on goods going up, yes it can be seen as an effect same as supply/demand reasons,
but it's actually all about the purchasing power value of the money going down.
Monetary Inflation isn't about fewer products available, but much more a matter of too much money chasing them.
As dollars noticeably daily buy less, then you've got hyperinflation kicking in, where that paper $ becomes like a
'hot potato', where you want to quickly exchange them for anything of more lasting value before they buy even
less tomorrow. That's what drives the prices of everything up, cause everybody is spending all their dollars quick
as they can on anything/everything that'll better hold its value than paper money. Even if they have no need for it,
they'll scoop up anything of value that they might could barter with later. The prices on many things will blast up
crazily now that nobody is trying to save $ anymore and is, instead, eagerly spending it as quick as they can.
BTW, the three historically biggest hyperinflation's you can think of; Weimar Germany, Zimbabwe, Venezuela all
were preceded by they each having, just the year before, the #1 fastest growing stock market in the entire world.
A booming, record breaking, all-time high stock market here in the USA now, might be a whole lot more about way
too much easy money these days, with the inevitable curse of inflation coming up fast next, than anything else...
Panic Early, Beat the Rush!
- Shane