Sunday, May 13, 2012

Explanation of Inflation

Via 101 Centavos, Invest it Wisely has a great simple explanation of how inflation works.   I think: "I should post this on my blog in case anyone else is interested."  Then I read the comments, and I am sad. I bonds do not solve the problem of inflation when the government reported rate of inflation is less than the real rate of inflation, plus you are taxed on the 'gains' from the bond.  I don't know why inflation seems to be such a difficult concept for people to master.

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