Finally the truth about inflation. It is not just about the money. Inflation is caused by expanding the money supply, in the same way whisky is made weak by the added water. Yes, water is being added to the whisky and money is added to the supply, but the real problem is that the amount of whisky is not growing relative to the dilutant. We will explain who adds the water and why, but as a bonus, this discussion explain how the distiller can force the thief who sells the watered down whisky, to find another way to make money.