Inflation

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Inflation is a rise in the general price level created by the expansion of credit - usually by the government's printing money. It's a "legal" form of counterfeiting made possible by fiduciary (fiat) currency. The solution to inflation is to eliminate fiat currency by allowing the market to select a species (gold backed) currency.

Inflation usually used a form of taxation when governments face large budget deficits.

Links

Alan Greenspan - Gold and Economic Freedom