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What Preppers Need To Know About Inflation


The typical layman’s understanding of inflation is simply more money, chasing the same or fewer goods, resulting in rising prices. There is an assumption behind this however, “all other things being equal”. Unfortunately, things are not likely to be equal, and it is important to understand some of those “other things” in order to understand inflation, or deflation which is the term for falling prices. Consider our recent financial crisis. The Federal Reserve pumped trillions of dollars into the economy, and very little inflation resulted. Clearly there is more than just the quantity of money at work in determining whether inflation occurs.
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