For example, one of the economic "true-isms" that I've never grokked is why the central bankers/ accountant types always say "high interest rates reduce inflation, low interest rates may cause inflation" - I've always thought of it the other way around. Any takers on this one?
Government and the banking mafia print money, that is, they 'inflate' the 'money supply' and so prices go up. The whole process can be referred to as 'inflation'. When all prices go up, people usually say there's 'inflation' and they are usually right, although they don't know the reason for the higher prices. So you have two related meanings for the word 'inflation'. A more technical one which includes the cause for higher prices, and a more 'vulgar' def. according to which 'inflation' just means higher prices. "high interest rates reduce inflation" So, what's meant by 'inflation' there? Just higher prices. And yes, the assertion is backwards. What really happens is this : The banking mafia prints money out of thin air. Since they have more (fake/counterfeited) money to lend, they lower interest rates. Fake 'capital' is more abundant, so because of demand/supply, the 'price' of capital (interest) goes down. And so, printing money has two different effects. It makes fake credit cheaper AND it causes prices of other goods and services to go up, in part because people are now spending the new money they got as credit. "low interest rates may cause inflation" Causation is backwards. Inflation of the money supply leads to 'low', SUBSIDIZED interest rates.