That is your notion of inflation, not the one you will read in most textbooks on economics.
"In economics, inflation is a sustained increase in the general price level of goods and services in an economy over a period of time.[1] When the general price level rises, each unit of currency buys fewer goods and services. Consequently, inflation reflects a reduction in the purchasing power per unit of money a loss of real value in the medium of exchange and unit of account within the economy.[2][3] A chief measure of price inflation is the inflation rate, the annualized percentage change in a general price index (normally the consumer price index) over time.[4"
Sir, this is the worst, manipulative post i have ever seen. The above quote is from Wikipedia, BUT you have intentionally erased a line from the definition. The original looks like this:
"In economics, inflation is a sustained increase in the general price level of goods and services in an economy over a period of time.[1]
It can be defined as too much money chasing too few goods.YEP it is pretty clear that user: "Trading" is a douche Fed lapdog with no integrity.
QE IS INFLATION.
INFLATION IS BAD (no matter how try to justify it)
Banks, manufacturers, governments, currencies and everyone should be allowed to fail. In their wake better solutions will arise.
Look at Mt Gox. They sucked. They failed. Now better exchanges rule the landscape. Bitcoin and a truly free market will prevail.
Inflation in general is bad, but the opposite, deflation is much worse. With deflation people will wait until "tomorrow" when prices will fall, causing prices to fall even more, causing people to delay their purchases even longer. This results in a decreased level of economic activity.
Inflation needs to be kept at a low level but not so low that deflation is a threat.