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How hyperinflation crept up on Germany- chart
Sat, 11/14/2009 - 18:21
How hyperinflation crept up on Germany- chart
Currency debasement showed up slowly for the first few years, and then hit like a train wreck in the end.
From Jan 1915 to Jan 1918 the German Mark lost 43% of its value against the dollar. YOY the debasement was slower. 1915 to 1916 was 13%, 1916 to 1917 was 7.5% loss. Look at 1917 from Sept to Dec when the Mark gained against the dollar from a rate of 7.29 to 5.67. Surely the German gov hailed this as the "worst is over". Things started to rapidly fall apart in 1919 as the Mark lost 82% against the dollar in one year.
As CM said it a few weeks back: going broke slowly, then all at once!!! Get your silver and gold now before its too late
Print
What that chart doesn't tell you is that the interest rate in the wiemar republic at the height of their "hyperinflation" was 900%. One of two things can happen when banks jack up the interest rates like that.
1. If they continue to loan to everyone to keep them in business you'll have hyperinflation.
2. If they raise the rates and stop loaning, they foreclose on everyone. (research the 1980's american farm crisis).
The only way out of this debt is money without debt = www.WealthMoney.org