Inflation, Explained From Scratch

Based on our good friend Ray Dalio’s theories.

Photo by Markus Winkler on Unsplash

Inflation is an easy concept to grab yet apparently “ungrabbable” by most people, especially, politicians.

Consider this:

Source: Twitter

Now, if you want my opinion, politicians saying such stupidities know it’s moronic.

People voting for them, though, likely don’t.

So in this article, we are going to use Ray Dalio’s explanation of how the economy works to understand how inflation works.

The mechanism of inflation is so basic a three-year-old child could understand it. Unfortunately, the abominable mainstream media does all it can to confuse you.

Forget about them and their shenanigans.

Here’s how inflation really works.

The Basic Phenomenon of Inflation

Inflation is not more complicated than these eight words.

Inflation happens when demand is superior to supply.

That’s it.