INFLATION

Yellow Highlighted

 Is where we are today! 

·       Severe Deflation: 15%+ annual price decline.  Implosion (bankruptcy) of debt causing massive downturn in the economy. 

A.    Wealthy and super rich bare the majority of the economic depression as their debts and assets are wiped out leaving many ex-wealthy becoming the new poor.

·       Mild Deflation:  From 0% to 3% price reductions from monetary decline and increased economic efficiency.

A.   Best monetary environment lifting working poor, working class and development/maintaining a vibrant middle class.

B.    Reduced money for wealthy and super rich class; reduces monetary division between haves and have nots. 

·       Stable Prices:  Zero percent monetary growth prices stay flat with prices increases due to supply shocks only.

A.    2^nd best economic environment allowing the poor and middle class to increase their standard of living.

·       Creeping Inflation:  Less than 3% annually prices moving up slowly.

A.    The poor and working class is negatively affected due to ever subtle increases in costs.

·       Walking Inflation:  3% to 10% annually with noticeable price increases that begin to pressure consumers.

A.   New money benefits asset holders and early recipients first, while wages lag for working families.

B.    Growing wealth gaps increases relative financial deprivation and domestic tension (class envy).  

·       Galloping:  10%+ annually where money loses value too fast; disrupting normal economic contracts.

A.  Strains household resources, elevates stress, and alters the financial incentives surrounding marriage, cohabitation, and child-rearing.

·       Runaway inflation stage 1:  25%+ annually beginning of societal breakdown especially within inner cities.

·       Runaway inflation stage 2:  100%+ annually inner cities in total breakdown requiring military intervention. 

·       Hyperinflation:  Exceeding 500% annually as the currency is now worthless as citizens attempt to use other forms of money – barter, gold, silver, Swiss Francs (hard currencies) to conduct business.