Inflation 101

The speaker provides a history on inflation.  He suggests that all wars are inflationary in nature.  If the government engages in deficit spending, it creates conditions for inflation; however, when the deficit spending is made on internal project such as road and bridges, this will eventually work itself back into the economy.  Bombs will never bring any economic benefit back to the currency. 

He also suggests that over the last 40 years, there has been an exponential increase in inflation due to the massive devaluation of the currency.  Abandoning the gold standard and moving to a fiat system was the key driver to inflation.