The Economic Collapse
September 25, 2012
Did printing vast quantities of money work for the Weimar Republic?
Nope. And it won't work for us either. If printing money was the
secret to economic success, we could just print up a trillion dollars
for every American and be done with it. The truth is that making
everyone in America a trillionaire would not mean that we would all
suddenly be wealthy. There would be the same amount of "real wealth" in
our economy as before. But what it would do is render our currency
meaningless and totally destroy faith in our financial system. Sadly,
we have not learned the lessons that history has tried to teach us.
Back in April 1919, it took 12 German marks to get 1 U.S. dollar. By
December 1923, it took approximately 4 trillion German marks to get 1
U.S. dollar. So was the Weimar Republic better off after all of the
"quantitative easing" that they did or worse off? Of course they were
worse off. They destroyed their currency and wrecked all confidence in
their financial system. There was an old joke that if you left a
wheelbarrow full of money sitting around in the Weimar Republic that
thieves would take the wheelbarrow and they would leave the money
behind. Will things eventually get that bad in the United States
Of course we are not going to see hyperinflation in the U.S. this week or this month.
But don't think that it will never happen.
The people of Germany never thought that it would happen to them, but it did.
The following is an excerpt from a Wikipedia article
about the Weimar Republic. Take note of the similarities between what
the Weimar Republic experienced and what we are going through today....