Inflation explained

This video does not illustrate "inflation". This video shows how supply and demand works. But that's not inflation.


Inflation is the increasing of a economy's money supply relative to the amount of goods and services being produced. When more money is produced beyond GDP, that money causes all the rest of the money, already in circulation, to be worth less.

Inflation is NOT rising prices. Rising prices are a consequence of adding too much money into an economy relative to GDP.

It says the others go and spend their money elsewhere, but there is only one bakery. So do the three buyers who leave first, go to the cemetery to buy a plot, cause with no food, there is no life. With only one bakery, the town has to be pretty small. I mean the first three that left were probably related to the owner. So, when his family stopped benefitting his business, he essentially starved them to death, rather than help them. Is this about inflation, or our future health care system?

This is so far off the real reason of inflation it's funny. Good try though.

Actually, this trade off of unemployment for inflation is only true in a Keynesian system, which is based on demand management. Basic economics shows that supply side management can result in lower unemployment and lower inflation. The video doesnt mention that if the bakery can lower its marginal cost of production, it can produce more bread at a lower cost, thus producing more and still making the same if not more profit.

Now add the speculators and the front traders and hedgers. and by golly you'll need to measure that currency every second against other currencies..
lastly we'll need to add the worst of all: the commodity speculators.

this is a great starter vid though! I say great job! 5*s!

This video is as simplistic and innaccurate as the graphics used in the video. Inflation has more to due with fractional lending than supply and demand.

this is more acurate as supply and demand

This video HIDES the fact that the government NWO has been secretly increasing our debt and taxes, and flooding the market with dollars thus causing hyperinflation and DEVALUING THE DOLLAR.
PREPARE FOR THE STOCK MARKET CRASH! .

Already has...

@mkmason2002
yeah it didn't go there but I think to do so would defeat this author's intention which I think is to demonstrate basic inflation cause/effect.
And I agree the DXY is being assaulted! poor dixie. I'd be digging gold if I could find a spot.