2 Reasons Why Inflation Is So Confusing

I just made this quick video to break down 2 key points about inflation…

This video was spawned by a post by Bill Bonner over at Daily Reckoning.

Also, in the video I made a brief mention of the Amazon Kindle. I thought everyone had heard of it by now, but just in the past week, I’ve had two friends in my house pick up my Kindle and say, “What in the world is this?”

I hope the two insights about inflation & deflation are helpful to you.

Have a great weekend  🙂

Reader Interactions


  1. Hey Jeff – a couple of points: Inflation is published with and without food and energy. What really confounds these numbers are the shifting definitions – the basket of goods and services used in the measurements and the adjustments (seasonal and survey). John Williams does a great job with these – http://www.shadowstats.com

    Your perspective on deflation assumes, as you say, a robust economy. Unfortunately over the last several decades America has gone from a creditor nation to a debtor nation. With huge government, corporate and personal debt loads, deflation is a nightmare. Imagine your income deflating while your debt remains the same. On the other hand, inflation, a rising income, makes it continually easier to make payments. And yes even borrow more. So though I don’t see deflation as a good thing, inflation feeds greed which has now come home to roost! In most of the “developed” world companies and individuals are looking for someone else to pay.


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