A Dollar Ain't Worth a Nickel Anymore

In 1970 a bottle of Heinz ketchup was 19 cents, now it's about $1.50.  Over time, goods and services cost more because of Inflation.  But, what exactly is Inflation and where does it come from?  Courtesy of Dictionary.com:  in·fla·tion [in-fley-shuhn] –noun 1. Economics . a persistent, substantial rise in the general level of prices related to an increase in the volume of money and resulting in the loss of value of currency (opposed to deflation). 2. the act of inflating. 3. the state of being inflated.  Translation: the Federal Reserve INFLATES the supply of money by printing more, which lessens its value.  Inflation has been a known byproduct of central banking since the beginning.  As noted by Representative Guernsey of Maine, a Republican on the House Banking and Currency Committee before the passage of the Federal Reserve Act of 1913:  "This is an inflation bill. The only question being the extent of the inflation."  So the inflation comes as a direct result of the Fed's operation, serving as a secret tax on the public.  On CSPAN3, July 16, 2008 Fed Chairman Ben Bernanke addressed the House Financial Services Committee and admitted that inflation is indeed a tax. 

The following two videos go further in illustrating the definition and cause of inflation.