[VIDEO] My knowledge of economics is weak. The only thing about inflation I do understand is that if you print lots of money then you get inflation. The price of food and other goods tend to rise if the US Gov't prints lots of money.
That's something Steve Forbes discuss in the above video. Monetary inflation is the term he uses and it's caused by a number of things not just printing money. He further discussion historical inflation say for example Forbes discusses when Rome switched their currency from being backed by silver to something less valuable such as copper. Throughout history other than invasions when gov'ts play with their monetary system that leads to ruin for nations.
As far as the dollar currently printing money leads to the issue of too much money chasing too few goods. Also the dollar is only backed by the full faith and credit of the US Gov't, besides we're supposed to use the dollar anyway. Also in our most recent history Richard Nixon when he was POTUS took the US dollar off of the gold standard. Now why would he do that?
So anyway, inflation is a current issue right now. Perhaps you're hearing about it on your local cable news channels. And you might be upset about gas prices though it's a bit separate from the issue of inflation. For now pay attention to how much money you spend on groceries.
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