Inflation 101 by Puru Saxena

Dear readers, I will very often refer to the Austrian school of economics. In a nutshell, these economists have always been against the maniplulation of the money supply for political means. They strongly believe in how a gold standard supports currencies. Puru Saxena from Hong Kong is an analyst I have followed for years. Here is what he had to say back on January 15th - it is an accurate description of inflation that I would agree with:

"Before we delve further, we want to make it absolutely clear that inflation is defined as the increase in the quantity of money and debt within an economy. And contrary to what the governments want you to believe, inflation is certainly not an increase in the general price level within an economy. Instead, an increase in the general price level within an economy is a consequence of inflation."

Puru advises his clients to buy gold. Puru watches the gold charts, he watches gold demand and he definitely understands the inflation hedge that gold provides. At Lear Capital, we do too!