'If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered.' - Thomas Jefferson The inflation is done on purpose by the "Federal" "Reserve" which is neither Federal nor has any reserves. it's a privately-owned bank that prints our money, and therefore CONTROLS "inflation" - the inflation of the money supply by printing more money. Inflation is not something that "happens", it is something that is "done".