Wednesday 25 September 2019

Types of Inflation and How to profit from it.

Inflation is due to an increase in the money supply.

Money Supply can be increased by increasing the printing of money or an increase in the velocity of money.

Increased in the printing of money leads to demand-pull inflation and eventually leads to hyperinflation.

Increased in the velocity of money leads to cost-push inflation and eventually leads to stagflation.


In hyperinflation, increased in money supply will make the money worthless.

The winner in hyperinflation is debtor or borrower, commodity business, producer of daily necessities and owner of real assets such as Gold and Silver.

The loser in hyperinflation is saver, lender, businessman, fixed pay employees, owner of big-ticket items such as house and automobiles as well as those who keep a lot of money.


In stagflation, the cost of goods increased drastically without an increase in the money supply. This makes each of us lose out in our buying power making us beggar in the house of the rich.

The winner in stagflation is commodity business and producer of daily necessities as well as the owner of big-ticket items such as house and automobiles.

The loser in stagflation is debtor or borrower, saver, lender, businessman, and fixed pay employees as well as those who keep a lot of money.

As a result, both hyperinflation and stagflation are bad for the economy and the citizen of a country.

Moral of the Story: Luck favor those who are prepared.

Be Bless,

Dr. Lion.

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