INFLATION
What is inflation? Inflation is the economic phenomenon where the general level of prices for goods and services in an economy rises, leading to a decrease in the purchasing power of a currency. This means that the same amount of money can buy fewer goods and services than before. Fiat currencies and counterfeit money: Fiat currencies are not backed by a physical commodity like gold or silver, but rather by the government's promise to pay its debts. The use of counterfeit or fake money in the system causes the value of the good money, leading to decrease in circulation. The printing money machine: Gold and silver have been historically considered good examples of money because of their limited supply and intrinsic value. However, when governments start issuing more fiat money, it decreases the value of good money. This causes people to save good money and spend bad money, decreasing the circulation of good money. THE LAW The law that is related to bad money is the law that is relat...