Guys we all have lots of valid and I believe correct points. Simon I have to however disagree with you again. The world IS plagues by inflation. There is that rule of thumb that the value of money halves every 7,5 years. Or put another way in 7,5 years what cost R50 today will cost R100. If we look back over the past 100 years prices for every day goods have been increasing. Why? Because there are more units of currency to units of goods and services. Depending on where you get your definition, the definition of inflation is a general rise in the price level brought about by an increase in the money supply (fiat currency) If we look at our own reserve banks stats they show that the money supply is increasing. Yes the rate of expansion has come down drastically in the past year but they are still creating more rands each year. We could I suppose get in to the endless debate between the Austrians and the Keynesians and their views on money and inflation but I doubt many people are interested. Im open to have my viewpoint changed but so far I have yet to read a convincing argument as to why we are not living in an inflationary environment. Im sorry but my rands buy less of the things I use (fuel, food, services (healthcare as an example)) each passing year. The supply of these things isnt really going up or down (ie there are as many around this year as last) so whats causing the price rise? My belief more rands diluting the purchasing power of the ones already in existence. Ill stop now. Feel free to try change my mind. Any resources welcome
... View more