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Junkman, thanks a lot for your continued invaluable posts for for readily sharing your knowledge and apparent passion for fixed income. I am curious to learn your general thoughts on inflation - not what your thoughts are on its extend or duration in the future but rather why we you, we, everyone universally, assume inflation on a secular basis (say over most 10-20-30 year periods?

I am an econ major, previous real estate investor, have worked on the Street...fairly financially literate...but this basic question perplexes me. I understand inflation as having to be "too much money chasing too few goods" and I understand that the government prints money and there is an ever increasing amount of money in circulation but why does that invariably lead to inflation? Why do we always assume inflation? The pull of population growth? Population and output of goods and services not matching demand quickly enough? Inflation confuses me a bit, a least in that it is an assumption most investors take as a given
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