Summary: <br> Announcer (<a href="https://www.temi.com/editor/t/T-whBEE_PBzxUt1WoBJogQTmc4ZansYKfhxf6Lbq8tnpqLjUez_uNcMr0AOSROCh1SAYcXFTsPGYIOoNZ_zIJWbiMH4?loadFrom=DocumentDeeplink&ts=0.3">00:00</a>):<br> <br> <br> <br> You’re tuned in to the Investing for Beginners podcast.<br> Finally, step by step premium investment guidance for beginners led by Andrew<br> Sather and Dave Ahern. To decode industry jargon, silence crippling confusion,<br> and help you overcome emotions by looking at the numbers, your path to<br> financial freedom starts now.<br> <br> <br> <br> Dave (<a href="https://www.temi.com/editor/t/T-whBEE_PBzxUt1WoBJogQTmc4ZansYKfhxf6Lbq8tnpqLjUez_uNcMr0AOSROCh1SAYcXFTsPGYIOoNZ_zIJWbiMH4?loadFrom=DocumentDeeplink&ts=36.24">00:36</a>):<br> <br> <br> <br> All right, folks, we’ll welcome to Investing for Beginners<br> podcast. This is episode 150 tonight; we’re going to continue our discussion on<br> the economy. Talk a little bit about economic basics. This is going to be part<br> two. We’re going to talk a little bit about inflation, deflation,<br> hyperinflation, money, some of those fun topics. And we’ll try to make it<br> interesting for you guys, so you don’t go into a snooze fest. I was just<br> kidding. So I’m going to start us off a little bit and talk about a few of the<br> basics. So let’s talk a little bit about inflation and deflation. So basically,<br> inflation is the increase in prices for supply and demand. So goods and<br> services. So when goods and services and their prices rise, so that would be<br> considered inflation. The opposite of that would be deflation. So that when the<br> prices of supplies and, or I’m sorry, goods and services decrease, that would<br> be deflation. Now, most people think that inflation is a bad thing, and it’s<br> not a when prices are rising; generally, that’s a good thing because, along<br> with that, typically then wages are going to rise at the same time.<br> <br> <br> <br> Dave (<a href="https://www.temi.com/editor/t/T-whBEE_PBzxUt1WoBJogQTmc4ZansYKfhxf6Lbq8tnpqLjUez_uNcMr0AOSROCh1SAYcXFTsPGYIOoNZ_zIJWbiMH4?loadFrom=DocumentDeeplink&ts=110.1">01:50</a>):<br> <br> <br> <br> So inflation can be a good thing and the only, there are<br> times when it’s going to be bad. So, for example, something like<br> hyperinflation, hyperinflation is when the prices rise more than 50% in a<br> month. And that’s not good because wages are not going to increase at that<br> weight, at that rate, which means that things are going to cost more and we’re<br> not going to be able to buy as much. And as we’ve talked about before, that all<br> kind of feeds into the economy. So when we’re talking about inflation and<br> deflation, we’re also talking about the monetary supply. So the monetary<br> supply, how that impacts both of those is when there’s credit expansion, and<br> there’s too much money in this system. Kind of like what’s happening right now<br> is the cysts. They’re flooding the economy with a lot of money. And what they’re<br> trying to do is they’re trying to tamp down on inflation by doing that because<br> when there’s too much money in the supply system that just me or the monetary<br> system, that means that there’s too much money chasing prices and it helps<br> lower the prices.<br> <br> <br> <br> Dave (<a href="https://www.temi.com/editor/t/T-whBEE_PBzxUt1WoBJogQTmc4ZansYKfhxf6Lbq8tnpqLjUez_uNcMr0AOSROCh1SAYcXFTsPGYIOoNZ_zIJWbiMH4?loadFrom=DocumentDeeplink&ts=178.59">02:58</a>):<br> <br> <br> <br> <br> <br> <br> <br> Now, if they contract the money, in other words, they make<br> credit harder to get, and the money in the system gets harder to get out into<br> the system.
