An area dedicated to discussing the differences between these two terms and the theories supporting them.
I'm looking forward to an in-depth discussion on the subject! I've noticed that confusion between the two seems to come up quite a bit on the blog, and thought it may be reasonable to dedicate a post on the matter.
Price-Deflation is what you are used to hearing about in Bitcoin. That term is used to describe the prices of goods/services as they decrease because the value of Bitcoin goes up.
Price-Inflation is the opposite. When prices of goods/services increase because the value of Bitcoin goes down.
So, when dealing with Price-Inflation or Deflation, there is an inverse relationship of price and value, in regard to goods/services and Bitcoin.
That's correct.
You also have
monetary inflation, which is what the FED does.
The "solution" to the 2008 crash was to print money. The FED discovered something very interesting (but evil): if you print money and give it to the masses, price inflation happens. In that case monetary inflation leads to price inflation.
BUT. And
here's the evil twist to the FED's game: if you print money and that money stays with bankers, and never reaches The People, then price inflation does not happen. Because The People can't spend the newly printed money.That's the FED's game. They print money for bankers. This money never reaches you.
If you try to buy stocks and other equities, you'll find that your money isn't worth anything because the FED has printed trillions of U$ and bankers buy it all cheaply while you work 9-5 for 30 years to build savings that they can simply pull out of their virtual money system.
That's the cruelty of the FED system. They simply print money for themselves, this money never reaches you. 15 families for whom they print money hold half the world's wealth, while 7 billion people work for them for free.
That's the difference between monetary and price inflation. The FED discovered a way to get one without the other and that's what's destroying the middle class around the globe.
That's exactly what happened with the European central Bank. The money that is printed never reaches the small people through salary increase, but get lended at 0% interest to private banks that only lend money to rich people.
I do think that inflation and deflation is the only egalitarian way of taxing / retributing the people.