Inflation and Gold, part II

We said in the previous post that the value of paper money in our economies is imaginary.
Any government has internal and external obligations. Wages of the public sector, infrastructure, transportation, defense... are examples of what is called 'public spending'.

When a government is spending more money than it has, they need to print more money, and that's how by force of law is decreed a devaluation.
And so all prices are inflated. One product that the last time you went to the store had a price, now has another, in what is known as 'inflation'.
This we call it  a fraud, governments call this 'Fiscal Policy'.
Let's continue this interesting topic.
Marco Picon
Author of "Cash for Gold! '

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