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<p>[QUOTE=&quot;fatima, post: 1293353, member: 22143&quot;]This is a very good example of how a policy of inflation ends up destroying everything.&nbsp; In your example, the very innocent looking 5% inflation resulted in a cumulative inflation of 62% in just 10 years.&nbsp; In 10 more years the figure rises to $23.87.&nbsp; Now 165%.&nbsp;&nbsp; Not so innocent after all.&nbsp;&nbsp; This is due to the very simple fact of math.&nbsp; </p><p><br /></p><p><br /></p><blockquote><p><i>Any system expanded at a constant linear rate will experience exponential growth.</i></p></blockquote><p><br /></p><p><br /></p><p>A graph of it looks like a hockey stick laid on its side with the puck end pointed up.&nbsp; i.e.&nbsp; You get a long period with little change then boom,&nbsp; the system goes vertical and eventually collapses as it heads to infinity.&nbsp; It&#039;s Federal Reserve policy to grow the US money supply by a fixed rate every year.&nbsp; Lately they have been exceeding this rate.&nbsp; It&#039;s the fundamental flaw of any fiat system that has to expand the system to pay the interest owed on the currency.&nbsp; (why they do it)</p><p><br /></p><p>This is why I would say that silver or gold isn&#039;t in a bubble.&nbsp; They are the hedge against $ printing and especially as it heads to the break in the graph.[/QUOTE]</p><p><br /></p>

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