Inflation is defined as a sustained increase in the general level of prices for goods and services.  Under this definition there cannot be inflation or deflation. The change is simply the value of the currency.  If an item cost 10 dimes one day and the next day that same item cost 20 nickels, there is no inflation just because 20 is more than 10. 

This general price level is of good and services, therefore basically both the buyer and seller.  Since the buyer and seller always match on price, there cannot be a general price increase.  As productivity increases the value of one’s labor and services increases.  This manifests itself in both lower costs of goods and service they are providing and higher cost of income for the person that is more productive. 

Therefore the general price when looking at labor and goods have to stay neutral.  Any time the price of services drop, somewhere the price of something else is higher.  Since every economic transaction has exactly the same amount paid by one as received by another, inflation is impossible.   Surly one commodity can raise or fall compared to others or the average. If Apples have a bad year then prices on Pears could increase.  This is not inflation.
The key to currency is always to have the money backed-up by things of real value as in my monetary policy.  Not just pegged to gold or a portfolio of commodities, rather every coin or paper currency has real property that it can be traded in for.  Once traded in we are left with less currency and also less property used for backing up the currency.  
The value of currency is always the value of all the property used to back up the currency divided by the amount of that currency.  If you add currency, and not property to back it up, you simply change the value of that currency.  Instead of owning 1/100X of the property used to back up the currency, after adding 10% over 18 months, now your same dollar can demand only 1/110x of the same amount of property.  


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    Bill Haley

      Bill Haley started Haley2024 in the spring of 2013 in an effort to his part in restoring freedom to America.


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