Inflation / Deflation Types

Economic Inflation-Deflation Price or Rate Value Types

1. Worker Wages (average income of masses, minimum wage, etc)
2. Cost of Living (housing, staples – food, drink, social tools etc)
3. Banks & Bonds (stable interest yield on loans and savings)
4. Stocks (risky investments and bets for and against companies)
5. Monetary value (currency liquidity, stability, rate of exchange)

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When people say “inflation” they rarely talk about deflation or even what type of inflation they mean in relation to the other types of value fluxations which are aspects of our economy that affect each other. Our middle class has been destroyed by the relation between these economic factors. Most people are struggling to afford basics of living, and losing their property as the 5% upper class get richer.

Worker wages have not kept up (or inflated) with cost of living inflation.

Banks and hedge fund companies have being extracting trillions of dollars from our economy and hoarding it. The Federal Treasury gives banks loans with 0% interest, then upper class bank owners loan to the lower classes for a profit from interest rates (credit card interest being the highest rates). Meanwhile average people’s savings accounts with banks and US bonds earn very low interest. So as a result of savings deflation, most of our retirements are now dependent on the stock market.

Corporate banks use our money to gamble with on the stock market, so we take more of a risk with less money, and they take no responsibility because when they go bankrupt their personal assets allow them to join or start another company later while living in slightly reduced luxury. Corporate insiders are usually allowed to trade and manipulate markets benefited by political corruption, without legal penalties. The stock market is usually considered always inflated, relative to minimum wages and the cost of living; but the current problem is that our stocks are the only thing making up for the difference between wage and cost of living price rates.

US monetary value is inflated due to our military and political importance in the world. Without waging constant war our dollar value would deflate relative to other currencies based on a stable standard. We went off the gold standard decades ago, and use fiat currency now which is based on bonds aka faith in the system that makes the currency. Dilution of monetary supply or over-minting (printing) deflates monetary value, which leads to inflation of market prices; because money is worth less, so it takes more money to buy things.

‘Supply & Demand’ are the most basic trade factors that affect Monetary ‘Inflation & Deflation’. Low supply but high demand usually leads to inflation; where prices for products increase (seller’s market), and the value of money decreases because it takes more units to buy products. Low supply and low demand typically means economic stagnation or low trade volume. High supply and low demand means deflation, which is considered a problem for manufacturers and collectors, but increases monetary buying power (buyer’s market) for sales potential in the future (if successfully marketed). High supply and high demand means massive profits, if sales are controlled by higher prices; if sale are not increased to match demand (restricting supply) then the supply can get too easily plundered too quickly, and the market becomes flooded and consumers will not buy at high prices (deflation) because demand will go down.

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