Money inflation and deflation

Inflation and Deflation


failure-215563_150I don’t know squat about economic terms, so if I sound like an ignorant fool, I’ll talk in logical terms to make my case.

I think I understand inflation, raising of the prices, and deflation is decreasing the buying power of the dollar.
I see this as a confusing dilemma of economics, a catch 22 of the economic system. I’m not dumb by any standards, but I never was involved in money terms. So the words you choose to describe the situations, I have to acquaint myself to.

If I’m wrong, please set me straight.

Since Roman times, the lire was the capital form of exchange, and through inflation and deflation over the years throughout history, now you spend $50 is roughly equated with 100,000 lire, it was the wars and fascism that brought it down from the buying power of the Italian Lire.

This was copied from Wikipedia

In 1927, the lira was pegged to the U.S. dollar at a rate of 1 dollar = 19 lire. This rate lasted until 1934, with a separate “tourist” rate of US$1 = 24.89 lire being established in 1936. In 1939, the “official” rate was 19.8 lire. After the Allied invasion of Italy, an exchange rate was set at US$1 = 120 lire (1 British pound = 480 lire) in June 1943, reduced to 100 lire the following month. In German occupied areas, the exchange rate was set at 1 Reichsmark = 10 lire. After the war, the value of the lira fluctuated, before Italy set a peg of US$1 = 575 lire within the Bretton Woods System in November 1947. Following the devaluation of the pound, Italy devalued to US$1 = 625 lire on 21 September 1949

And eventually it was replaced by the Euro in 2008, and this was copied from Wikipedia too

Notes in circulation when the euro was introduced were:
1,000 lire, Maria Montessori (€ 0.516)
2,000 lire, Guglielmo Marconi (€ 1.03)
5,000 lire, Vincenzo Bellini (€ 2.58)
10,000 lire, Alessandro Volta (€ 5.16)
50,000 lire, Gian Lorenzo Bernini (€ 25.82)
100,000 lire, Caravaggio (€ 51.65)
500,000 lire, Raffaello (€ 258.23)

Imagine paying between 5000-10000 lire for a loaf of bread, I’m doing some rough math in my head and comparing it to the dollar.

They jumped at the chance to go with the Euro, while every austerity dilemma followed them. They brought the weight to the Euro in 2008, when the dollar crashed.

I don’t understand the terminologies of the economic situation, I’m only revealing my stupid and ignorant opinion. Fascism brought down the Italian Lire, so fascism is bringing down the dollar’s buying power.
We can’t marry govt with business, it breeds corruption.
Can I get a “yes”?

The business ethics follows looking for profit above all else, and the people get ripped off, and have no recourse to go after the big corporations. Thus making it fascism/corporatism where the govt and corporations make their bed and sleep in it, while the people they serve goes to bed alone in the oligarchy they created.

They wake contented in their wealth, while they rip off their constituents with low wages and austerity measures, and the whole time they exclude themselves from the austerity measures. Stop spending is the austerity measures I’m talking about, stop raising the debt ceiling.  Pay off your debts, is the way to go. Fractional Reserve banking is a con job, that makes debt rise and rise, till the bubble is ready to burst.

I see the love of money as the root of all evil, but I see the hate of money as the other side of the evil coin. The extremist view of money, is a constant war between good and evil, no one is the victor, it’s a never ending argument.

You’re both right it just that you will never agree, and that’s the trap. Once an argument starts, you are trapped in proving your right, or defending your right, either way you’re not free anymore.

Think about it.