Head over to The Liberty Papers for a great explanation of inflation and what you may be able to do about it.

Quick synopsis:

  • Higher prices are a result of inflation. The inflating occurs when the money is printed.
  • Inflation has a trickle down effect…sort of like sewage. Those who are close to the money when it is printed, (for instance, people who get paid to build roads through the Stimulus plan)  get to buy materials before prices rise, those who are further down the money food chain pay high prices.
  • If you think you are poor and oppressed now, just wait.

The primary misconception of inflation is that it merely is the rise in prices.  The news media encourages people to believe this, reporting the inflation rate in the same way it reports on changes in the weather, as if it is some natural phenomenon over which people have no control.

Definitely worth your time to read the entire article.