Are we actually in a deflationary environment right now? I answer this question by explaining how the economy is impacted by the expansion and contraction of credit and much more.

Note about the banking graphic: Our fractional reserve banking system is the reason that the supply of money expands in a debt-based economy. Since banks are only required to hold a small percentage of your bank deposits, they are able to loan the rest out to others in order to make interest off your deposits. This essentially amplifies the amount of money out there, which is by definition inflationary.

Thanks so much for watching and for your support and I’ll see you in the next video!

EDITING CREDIT: Hannah Kevitt
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MUSIC CREDIT: “On A Wave” by Nhien
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soundcloud.com/nhien-le
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