Money 101 will run the gauntlet of the basics of money in the past, present, and future.
There are some basic economic realities of Money 101 that we must understand. Sound money cannot and should not be stable or stationary. Words like inflation and deflation are just used to describe this instability, depending upon whether or not money’s purchasing power is rising or falling. It is completely natural and healthy for supply and demand to run its course without intervention. By allowing the free market to work, the value of any one thing will be determined on its own merit.
However, the doomsday scenarios come about when governments and like entities try to manipulate the free market. By suppressing or propping up that which naturally should not be, they create an exponential adverse reaction to the contrary. This adverse reaction will be realized when the manipulation can no longer take place. That’s a big lesson in Money 101 that most people won’t realize until it’s too late.
In Money 101, we see that governmental engineering results in a rigged market. This environment creates values for products and services that are often counter to their real value. What once was a natural rise and fall of prices, then becomes an unnatural and dangerously volatile rise and fall. In that sense, the healthy inflation and deflation then have the potential to become black swans which can destroy nations.