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<p>[QUOTE=&quot;Cloudsweeper99, post: 822232, member: 3011&quot;]It&#039;s a little more complicated than you suggest.&nbsp; Inflation is a condition when there is a general increase in prices of goods and services in the economy because the rate of increase in the supply of money exceeds the rate of increase in demand for money.&nbsp; Deflation occurs when there is a general decrease in prices because the rate of increase in the supply of money is less than the rate of increase in demand for money.&nbsp; The absolute increase or decrease in the money supply doesn&#039;t necessarily indicate the inflation/deflation condition. </p><p><br /></p><p>Also, your statement about the money supply doubling over the past two years is evidenced by the graphs in the link below.&nbsp; The absolute levels are up, but the rate of growth is decreasing-to-negative depending on the measure used.</p><p><br /></p><p><a href="http://www.shadowstats.com/alternate_data/money-supply-charts" target="_blank" class="externalLink ProxyLink" data-proxy-href="http://www.shadowstats.com/alternate_data/money-supply-charts" rel="nofollow">http://www.shadowstats.com/alternate_data/money-supply-charts</a>[/QUOTE]</p><p><br /></p>

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