You may ask, “ why does Dave keep writing about inflation, and why does he insist on referring to fractions?”
If you don’t understand it, this is a legitimate question, so I will try to address it in a way that will make sense to you.
First, let us consider what exactly is a fraction.
Definition of fraction;
1a : a numerical representation (such as ³/₄, ⁵/₈, or 3.234) indicating the quotient of two numbers
b (1) : a piece broken off : FRAGMENT
(2) : a discrete unit : PORTION
In order for us to understand definition 1a, we must understand the definition of quotient.
: the number resulting from the division of one number by another.
In other words, a fraction is designed to help us understand the relationship of one item to the group to which it belongs.
How does this relate to inflation? Inflation, at its core element, is the degradation of the relationship of each dollar, (a unit of measurement of worth,) to the value of the item, (goods, or service.) Dollars are currency, and currency is meant to provide a medium to exchange one item of value for another. In order to accomplish this, this medium, or dollar, must have worth.
In the case of the modern dollar, its “worth” is mostly imaginary, or arbitrarily assigned on its face, but the individual unit of measure’s worth is determined by its relationship to the whole. This is not an opinion, it is a mathematical fact. If we consider that there were one hundred and fifty trillion American dollars in circulation, then each dollar’s worth would be one/one hundred and fifty trillionth of all the value available.
With this understanding, what happens, when out of the blue, another fifty trillion dollars is introduced to circulation?
Each dollar that you have previously earned, is now worth one/two hundred trillionth of all the value available, or 30% less. You can now trade that currency for one third less goods, or service, than you could before the fifty trillion was added.
Now, think about how many trillions of American dollars have been introduced into the market since 2008. That should give you a better understanding of just how much of the value you that have produced has been stolen from you by our government, and divided up between bankers, politicians, and “social services.”
Goods and services are finite, they cannot be artificially created. When the value of the medium used to trade these items of value that you have created is diminished, YOU HAVE LESS, and those who tricked you can now spend that stolen wealth, (welfare anyone?).
I hope that this will help those that are struggling with my compositions on “INFLATION.”
God bless you, Dave