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INFLATION/DEPRESSION
INFLATION/DEPRESSION
As long as a one to one ratio is maintained between the money supply and the production and consumption of goods and services, government issued interest free, debt free, and tax free money will not cause inflation. Inflation is caused by charging interest on money lending. When interest rates are increased on bank printed money to try to control inflation the result is depression and more inflation. When interest free, debt free, and tax free government printed money is issued, the correct way to control inflation is to increase bank reserves and lower interest rates on bank printed money.
INFLATION/DEPRESSION
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