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Chapter 10 (Inflation): Dr. Martenson establishes inflation as a monetary phenomenon, defined as the decrease of the value of money, caused by too much money around in relation to goods and services. From 1665 to 1776, 111 years, there was absolutely no inflation. From 1665 to 1905, 240 years, the cost of living stayed roughly the same, aside from brief jumps during wars. Unfortunately for us, there was no settling in terms of inflation after World War I or World War II. The military apparatus was not dismantled, and inflation has accelerated to astonishingly high levels. www.chrismartenson.com

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In this video inflation inflation is considered as a current consequence of the Obama stimulus package – ie. why it isn’t currently happening, and the theoretical inflation that will kick in once the economy starts to improve.
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All wars are inflationary, in fact they are the most inflationary spending of all. The money stays behind while the goods produces are sent away and blown up.

[youtube]http://www.youtube.com/watch?v=afWqKcqntfs[/youtube]
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