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When Money Dies: Germany and Paper Money After 1910
Submitted by Marcia Christoff-Kurapovna via The Ludwig von Mises Institute,
The story of the destruction of the German mark during the hyper-inflation of Weimar Germany from 1919 to its horrific peak in November 1923 is usually dismissed as a bizarre anomaly in the economic history of the twentieth century. But no episode better illustrates the dire consequences of unsound money or makes a more devastating, real-life case against fiat-currency: where there is no restraint, monetary death will follow.
"It matters little that the causes of the Weimar inflation are in many ways unrepeatable; that political conditions are different, or that it is almost inconceivable that financial chaos would ever again be allowed to develop so far," wrote British historian and MP Adam Fergusson in his 1975 classic, When Money Dies. "The question to be asked — the danger to be recognized — is how inflation, however caused, affects a nation."
The US Federal Reserve of 2014 is not the Reichsbank of 1914. Yet today's policy mindset is dangerously reminiscent of the attitudes that helped to excacerbate the economic downfall of inter-war Germany. These include: the unrestrained financing of budget deficits under war and post-war conditions; the unaccountable creation of the money supply by a central bank; the creation of undisciplined credit linked to this expansion of the money supply; the aggressive inflating of asset values; the discounting of short-term treasury bills and notes in practically unlimited amounts; rapid currency depreciation, and a ratio of federal debt to GDP over 100 percent.
Prior to World War I, the German mark, the British shilling, the French franc, and the Italian lira were all valued around the same — about four each to the dollar. By the end of 1923, the rate for the mark was one trillion to a dollar — one million-millionth of its former self. In mid-1922, a loaf of bread cost 428 million marks, while the entire equity capitalization of Daimler Corporation bought the equivalent of 327 of their cars. In November 1923, that which before the war could have purchased, in theory, 500 billion eggs could, that infamous month, procure but one egg.
Former Prime Minister Henry Lloyd George, writing in 1932, remarked that words like "catastrophe," "ruin," and "devastation" were not enough to describe the situation, given the common usage into which such words had fallen. Looting, vandalism, theft, the rise in prostitution, famine, disease, the consumption of dogs; people robbed of their clothes on the street — all were routine events of the "bourgeois" social quotidien. The constant threat of civil war loomed, as did neighboring Bolshevism. Bavaria had to declare martial law.
The Rise of Paper Currency after 1910
The price inflation had begun slowly. In 1914 there was a minor increase in the wholesale price index. That index, with a base of one in 1913, had increased to 2.45 by the end of 1918. Beginning in 1919, the speed of the inflation increased, advancing to 12. 6 in January 1920; 14.4 in January 1921 and 36. 7 in January 1922. By the second half of 1922, that index stood at 101 in July; it was 74,787 in July 1923 and 750 billion on 15 November 1923.
The 100 trillion note was then issued and the presses of the Reichsbank were printing money to the record tune of 74 million million million marks a week. Rather than stop this madness, the Reichsbank continued to print more money, claiming that it was keeping employment steady, and promising the population that relief was always just around the corner. An atmosphere of civil chaos reigned.
The Versailles Treaty was not the main culprit: it only worsened a bubble-blowing monetary policy in place prior to the war. Before 1914, the credit policy of the Reichsbank dictated that not less than one-third of the currency issue had to be covered by gold. But once paper currency became legal tender in Germany in 1910, such currency became a reckless expedient.
By the outbreak of war, most of the world had given up the gold standard and had gone over to paper money. The commodity was withdrawn from circulation and was largely piled up in the vaults of a few central banks, but mainly that of US: from August 1913 to August 1919 the US stock of monetary gold in the US increased by 65 percent.
Back in Germany, massive bond issues were sold appealing to mass patriotism in order to pay for the war. Private fortunes were transferred into paper claims on the state as the Reichsbank suspended the redemption of notes into gold. Loan banks were established that printed money at will and banks gave out unconstrained credit to advance money for war-bond subscriptions. The most ominous measure for the future was that which allowed the Reichsbank to include three-month treasury bills in its currency coverage such that unlimited amounts could be rediscounted against banknotes.
In contrast, Great Britain handled financing the war far more prudently: London met the cost of war by raising taxes aimed primarily at those industries and groups that best stood to profit from the war.
In Germany, gold was depleted paying for war reparations and as a result of the French invasion of the Ruhr. Yet only gold provided occasional relief to citizens at large when a handful of industries were able to issue small gold marks to pay employees. Höchst Dye Works, for example, paid workers from the 400,000 Swiss francs it had stashed in Swiss bank reserves.
Germany Turns to the Rentenmark
At the breaking point, monetary policy was taken out of the hands of the Reichsbank via what was effectively a coup d'etat by Chancellor Gustav Stresemann. All loans to the government were cancelled. Monetary policy was decentralized. The state was rigorously separated from economics.
A parallel banking structure was organized by a prominent non-governmental economist-maverick who came up with a new currency scheme first backed by rye-bread —the most coveted value at the time —and later gold, once that commodity could be procured again. Those "gold-backed" notes, the Rentenmarks, were guaranteed by mortgages on landed property and by bonds on German industry in the amount of 3 billion gold marks.
In reality, there were practically no gold reserves left. Yet, the incalculable social and psychological effect upon the population in announcing a return to currency with gold parity on a one-to-one basis calmed social tensions and jump-started economic stabilization immediately.
"The genius of the Rentenmark is that it released the Reichsbank from having to finance the government," writes Fergusson. Rigorous discipline of state expenditure followed, as well as the refusal of further credit to the government, and the eventual return of the mark to parity between gold and the dollar. For many years afterward, gold mark clauses in long-term obligations were characteristic of the German capital market.
Today's conditions are not Weimar conditions. But there are unsettling parallels in terms of monetary policy and the inflation money and credit. Since President Nixon abandoned the gold exchange standard in 1971 up through 2003, the supply of money in the US increased by 1,100 percent. The Fed's balance sheet, ballooning from $500 billion in 2000 to $4.4. trillion at the end of 2013, has been the result of money printing.
"In a few years time, most of the world will be as sick of managed paper currencies as it was twelve years ago. The main trouble will be that popular ignorance and lethargy, coupled with selfish special interests, forces politics into the management of economics and the management of economics into politics. Politically speaking, the world is yet far from being ready for managed paper currency standards."
These words were written in 1932 by the American economist Edward Kemmerer, one among the clearest arguments against fiat-currency ever written. ‘No gold, "No printing" history tells us: the most important monetary lesson that central banks, once upon a time up through the present day, refuse to learn.
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I will gladly trade you Gold for Silver any day, but stay away from my Palladium, Platinum and Rhodium...
Oh, and expect down arrows from the Jew... He hates real money because he can't print it with his copy machine... Metal and TRUTH to a Jew is like sunlight to a Vampire...
Good analogy...
Just for shits & giggles, please reconcile your comment "but stay away from my Palladium, Platinum and Rhodium"
with a previous one from above:
"I'm just a bored person with no money...."
Ok, so they have been throwing coin into my hat lately...
NOW DO YOU FEEL BETTER?
IS
define 'gold backed'
the euro has gold on the balance sheet marked to market. It is a medium of exchange which seems to be discouraging use as a store of vlaue...
OTOH it does not declare any set amount of gold to have a value in euros.
Gold backed means that you can trade your Jew confetti for gold at the bank because it says so.
Are you really that stupid as to not understand that?
Fuck me the education system is a fucking disaster...
gold backed will be a small percentage but enough to control expansion. For example, coins will not be gold, but will contain a certain percentage of gold. And of course as time goes on "They" will decrease the amount of gold in those coins down to nothing. The usual rinse repeat they love so well.
http://www.texemarrs.com/062004/soviet_gulag.htm
Restraint?
How 'bout I take a dump on Jamie Dimon's face and we mint that image on a square of two-ply extra strong and exchange it at a rate of one per US dollar. Even up and problem solved.
Actually, that smells like a business opportunity. "Theme" toilet paper.
One of these days, someone might bring up how the United States had its own problems with paper currency, called Continental Currency.
The United States of America should be renamed
The Jewnited States of Israelica.
Jew only composes 2% of our population, but they compose 100% of our criminal counterfeiting banking system of government...
http://thezog.wordpress.com/who-controls-the-federal-reserve-system-part-1/
And to PREVENT another such currency disaster - where infaltion ruled and the specualtors profitted while those that were owed money (soldiers and suppliers to the Continental Army) lost out, the Founding Fathers wrote into the Constitution that the power to issue PAPER currency was DENIED - the US government could ONLY COIN GOLD AND SILVER - a US dollar was defined as a specified amount of silver - or gold.
Of course all THAT 'foolishness' was done away with......
The problem isn't that money is being printed... The problem is that it's being printed by the Jew for the Jew... Instead of by the people for the people...
http://thezog.wordpress.com/who-controls-the-federal-reserve-system-part-1/
Remember Weimar does not care if the trolls give him down arrows...
The Mises institute has it backwards. The money supply increases because of the creation of undisciplined credit.
Everybody shits, so when shit becomes money, of course the money supply will expand. And everyone is rich.
If shit was used for money we wouldn't have much use for it. Except for the creepy Jew hiding in the corner. On his enormous pile of shit...
It's a shitty world after all.
It's all fun and games until six hundred million Jew get their eyeballs poked out...
Why stop there? 6 billion sinners, all who need eyes poked out.
And entrails drawn...
Not only has my point gone straight over your head, you've got some serious issues.
Actually, I did get your point, I just put a twist on it... And agreed, we all have issues with people that steal our wealth and enslave us...
http://thezog.wordpress.com/who-controls-hollywood/ http://thezog.wordpress.com/who-controls-the-federal-reserve-system-part-1/
Remember Weimar
The key difference between Germany then and the DC US now, is that Germany still had control of their fiat. The DC US does not. Even if the Zionist banksters stopped "printing" now, the prior petrodollars would come flooding back and set off a supernova inflation. Additionally, after the petrodollar is destroyed, no foreign producers will be willing sell to Walmart, Home Depot, etc. anymore, and without a manufacturing base...
Next, Americans not only do not have control of the fiat currency, but the DC US government has been cooped and taken over. The Zionist overseas banksters and their Greater Israel home base now own and run the DC US for their benefit..
And during the treason at the Bundy ranch, the American people also learned that the American country is being sold right out from under them to foreigners.
An American, not US subject.
"My guillotine likes foreign food too."
Zionist overseas banksters? Greater Israel? You're out of your element. TPTB wouldn't care if Israel would cease to exist tomorrow. Even though according to a certain logic they should be benefitting from a "strong" Israel, but the NWO players are too short-sighted and selfish for long term planning. Which is a good thing, because that would somehow allow the Zionists (you know, the ones who actually live in Israel) to turn on the global banking system and adapt to alternative paradigms. But I digress.
What I'm saying is that the "powers" were never big Israel/Hebrew fanboys nor are they today. Check out how the English went back on the Balfour delaration with the consequent white papers: https://en.wikipedia.org/wiki/Churchill_White_Paper (and the following much harsher one: https://en.wikipedia.org/wiki/Churchill_White_Paper, and the final and most severe: https://en.wikipedia.org/wiki/White_Paper_of_1939 (by yours truly, Neville Chamberlain)). Not to mention the recent Bush/Klinton/Bush backed deadly Oslo escapade: https://en.wikipedia.org/wiki/Oslo_Accords. Yes, I'm sure Yellen, Bernanke and Fischer are hard at work on the "greater Israel" project.
I've got a few deutschmarks under my mattress. ;-)
I've been writing "SDR" on old napkins and stuffing them under my mattress...I should be well off.
On a serious note, it will be interesting to see what crap currency will be shoved down our collective throat next.
"On a serious note, it will be interesting to see what crap currency will be shoved down our collective throat next."
It will be an SDR currency. They will force their victims to repay, say dollar debt, in these SDRs.
They will not allow the debtors to repudiate their debt.
Bring on the guillotines.
An American, not US subject.
"They will not allow the debtors to repudiate their debt."
This is exactly what's been bugging me about this "currency crisis"...what happens to the banks when we can pay off all our fixed debts with, say, an hour's wage...? That'll never happen; I unequivocally agree.
No debt jubilee coming...just more of the same w/ greater centralization and control of the population.
Unless the Cops all wake up...
How, exactly, will cops waking up help repudiate debt?
The cops are the most heavily sedated of us all. Their interests are aligned with the existing system of governance more than any other group, save maybe federal employees, that I can think of.
An interesting thought experiment is to ask how those cops will support their families if they all the sudden "woke up" and realized they were nothing more than the attack dogs used by the the bankers? Who offers them pay when they quit breaking the Constitution for a paycheck? What would it take to organize that pay and would the existing gub'mint stand for it? What would Napolean do if the geese tried to hire his attack dogs? Even if the cops were pretty well pissed off, what are their options? Cognitive dissonance is a tough nut to crack...and is usually followed quickly by a little bit of rationalization. My guess is they'll rationalize their behavior and maintain the status quo.
You aren't a genius are you... Look - if the cops wake up it will allow we the people to end the Federal Jew Reserve and return the money printing press to ourselves, it's rightful owners, and print however much money we need to pay for whatever we want... There is no limit to the good we can do... We can do whatever the fuck we want with OUR printing press once we get it away from their evil...
http://thezog.wordpress.com/who-controls-hollywood/
Remember Weimar
"and print however much money we need to pay for whatever we want... There is no limit to the good we can do..."
Totally my fault for replying to a troll...I'll let your own words quoted above stand on their own merit.
Yup, the banksters will just force the debtor to pay in what ever currency/form the banksters desire.
And for those saying, "But my contract says...," that is where owning the government, the court system specifically, comes in handy for the banksters.
An American, not US subject.
"Think of a guillotine as a very large garbage disposal."
Extraterrestrials ran the Weimar banks and printed money to control the planet. They are here among us and always have been
David Icke, is that you?
Technically speaking, the Jew could be injecting himself with reptile DNA for all we know... I wouldn't put anything past them...
AE 9/11 Truth researchers plan lawsuit to seek release of 500,000 documents held by FEMA, NIST
Maybe we'll all get to go to heaven after this fiat experiment. But if there any bankers there, I'm the one that's going to be jumping off the cloud.
There's another option...look me up, I'll help...you grab the arms, I'll grab the legs...I'll be the guy at the bar wearing the Hawaiian shirt and drinking blue motorcycles.
Just one line will kill ya so, better forget about the heaven thing. The bankers? we know where they reside.
Long Live, Wolfgang Schäuble.
That Man is the voice of reason!
Economists routinely dismiss the simple truth that work is a second choice. Secondly they study institutions in terms of how they are defined rather than according to how they function. Central banks are defined as economic institutions so economic decisions are assumed.
Central banks are political institutions although they are named something else. As political institutions, central banks facilitate the rent seeking initiatives of politically powerful elitists. Rent seeking is a first choice. Work is a second choice.
Define the situation correctly and all of these situations make perfect sense.
Common Sense Economics http://quillian.net/blog/
You're over complicating things.
The Jew bankers counterfeit money for the Jew military industrial complex so they can bomb other countries and install printing presses there.
See?.. Not that complicated....
http://thezog.wordpress.com/who-controls-the-federal-reserve-system-part-1/
Remember Weimar
Here's a viewpoint from Michael Hudson's Financial Capitalism and Its Discontents.
Hudson argues that the 'sound-money'/'anti-fiat'/Austrian explanations for hyperinflation actually miss the mark (no pun intended):
"The German public has been given a false memory of its traumatic hyperinflation. The pretense is that this resulted from the Reichsbank printing money to finance currency spending. The true explanation is to be found in the foreign currency collapse-- trying to pay foreign debts far beyond the ability to do so.
Every hyperinflation in history has been caused by foreign debt service collapsing the exchange rate. The problem almost always has resulted from wartime foreign currency strains, not domestic spending. The dynamics of hyperinflation traced in such classics as Salomon Flink's The Reichsbank and Economic Germany (1931) have been confirmed by studies of the Chilean and other Third World inflations. First the exchange rate plunges as economies pay for foreign military spending during the war, and then -- in Germany's case -- reparations after the war ends. These payments lead the exchange rate to fall, increasing the price in domestic currency of buying imports priced in hard currencies. This price rise for imported goods creates a price umbrella for domestic prices to follow suit.
...[The imposed reparations after the war] left little alternative but for the Reichsbank to create German marks to throw onto the currency markets to obtain the foreign exchange to pay reparations. This raised the price of imports, and hence the domestic price level. More domestic money is needed to finance economic activity at the higher price level.
So the line of causation went from the balance of payments and currency depreciation to rising import prices. More expensive imported goods raised domestic prices as well. It was this that created a need for a higher money supply, not domestic money that forced higher prices."
-- Financial Capitalism and Its Discontents
Good post new ucde.
Oh and to the issue of the continental, I understand there was a hell of a lot of British counterfeits produced and circulated.
Actually, he's been brainwashed...
Michael Hudson is a Jew propagandist...
But thanks anyways...
Here is a photo of a set of Weimar currency I had framed for my wall.
You can follow the HI from a 1 DM note all the way up to 500 MM DM.
Crack-up boom, bitchez!
Zimbabwe banknotes provide a more interesting collage.
You can tell how fast inflation was progressing by the jump between denominations.
1 5 10 10 20 50 100 500
1,000 10,000 20,000 50,000 100,000 500,000
1,000,000 (million) 10million 50million 100million 200million 500million
1,000,000,000 (billion) 5billion......being optimistic here with 'only 5 billion instead of going straight to 10.......10billion 20billion 50billion... oh screw it, go to trillions - and skip 1trillion while you're at it.....
10,000,000,000,000 (10trillion) 20trillion 50trillion 100trillion - that's 14 zeroes the 20 trillion notes are pretty rare - not long before they went right to 50 and then 100 trillion....
Mind you this was the THIRD currency issue - after they'd already lopped off some zeroes - and after 100trillion, they lopped off 14 zeroes and started again with 1 (but nobody would sell them paper anymore so they gave up - not that anyone wanted ZIm dollars - anybody that could used $US or SArand)
OK, so cobble it together and frame it for your wall.
I found my Weimar bills at an antique store in the Lincoln Square neighborhood in Chicago. I imagine some German immigrant arrived here with a bundle of this mess, a bitter souvenir from the Old Country.
The Germans knew when to stop the HI and just go home.
http://www.texemarrs.com/062004/soviet_gulag.htm
The same generation was ruined by the Weimar Republic, and again in 1945.
Marcia, Marcia, Marcia...
So many false assumptions and direct factual errors that it is hard to know where to begin. Okay, just one to get the ball rolling: Lloyd George's first name was David, not Henry. He did succeed H. H. Asquith as Prime Minister, whose given names were Herbert Henry.
Partial credit for not saying that his first name was Lloyd, but you are supposed to have a mastery of your subject and a decent editor to catch these things before they go out the door. I do think your heart is in the right place, however.
For those who truly wish to understand the world we live in today and how it was shaped by the First World War, particularly its end, I STRONGLY RECOMMEND "The Kings Depart" by Richard M. Watt.
Much of what these people dimly sense can be instantly clarified and, better yet, appreciated. This is the exact moment in time when it all began to go wrong and having a crystal view of the situation is crucial to recognizing the road we are on today.
Nazism, Communism, and the subject under discussion here-- Weimarism-- were all born as a result of the same ruinous conflict and their interrelation is important to understand.
As usual, tarabel, you are wrong.
Nazism and Weimarism are opposites.
Nazism is when you use the printing press to assist those less fortunate and could use a hand up.
Weimarism is when you use the printing press to assist those that are already well off and do not require additional wealth. They might be greedy or insane, but that doesn't warrant letting them counterfeit themselves all the money they desire and destroy the entire planet in the process...
http://thezog.wordpress.com/who-controls-the-federal-reserve-system-part-1/
Remember Weimar
I'm sorry that you cannot grasp the interrelation between numerous ideological forces struggling to control ex-Imperial Germany at the same time. Weimarism barely triumphed over the surging forces of socialism/communism but only did so at the cost of tarring itself with responsibility for the Treaty of Versailles, and with the help of an unrepentant right wing that started with the stosstruppen and freikorps and ended with the NSDAP, or the Nazis for short, in control of one of the most powerful nations on earth.
This very fascinating historical period offers a lot, and I mean a lot, of guidance for those of us about to undergo a societal crisis of our own. It is not so much about the struggle to come, but about what will supersede the existing institutions. Without careful thought and a firm understanding of what one is fighting to achieve, we could well end up doing a Weimar and opening the door to something far, far worse than what we currently complain about.
(Insert standard-issue Santayana quote here)
"Those who cannot remember the past are condemned to repeat it."
A crisis seems inevitable. Act for an ultimate purpose.
Yes, once the criminal Chosenite parasites are behind bars, things will improve rapidly.
Communism or Marxism, Internationalism, or whatever shifting name they call it you call it preceded WWl
As an idea, of course yes, but as a victorious ideology in control of a nation state, no. Re-reading my last paragraph, I see that I was unclear on this point. My apologies.
"banks gave out unconstrained credit to advance money for war-bond subscriptions."
Now we have zirp unconstrained credit for banks to buy government bonds to sell to the central bank to monetize debt and pump liquidity into the bank-owned stock markets. What can possibly go wrong?
"Those "gold-backed" notes, the Rentenmarks, were guaranteed by mortgages on landed property and by bonds on German industry in the amount of 3 billion gold marks. In reality, there were practically no gold reserves left."
Now we have commingled, rehypothecated, "price-fixed" gold markets with no audits or deliveries (To sovereign owners) in sight.
Today's conditions are not Weimar conditions.
They didn't have derivatives back then. It's a few quadrillion times worse.
Bingo...
Also, they didn't have the NSA spies and the Military Industrial Complex on their payroll...
http://thezog.wordpress.com/who-controls-the-federal-reserve-system-part-1/
How about minting just one platinum trillion dollar coin instead of filling wheelbarrows with dead dollars? Nobel Prize winning Professor Paul Krugman thought it a grand idea in January of 2013:
"Should President Obama be willing to print a $1 trillion platinum coin if Republicans try to force America into default? Yes, absolutely. He will, after all, be faced with a choice between two alternatives: one that's silly but benign, the other that's equally silly but both vile and disastrous. The decision should be obvious."
If we follow historical precedent, one ounce of platinum could very well end up being worth $1 Trillion - the problem is that when that happens, a loaf of bread will cost you a few billion dollars.
Makes it easy to pay off the national debt though.....
Fuck, just write $1,000,000,000,000 on a piece of god damned tinfoil and hand it to the cockroaches...
...............
I think it's important to point out the distinction between Zionism and Judaism. Zionism is an extremist political movement, and has little or nothing directly to do with the Jewish community as a whole. Zionism was launched by British covert intelligence and many non-jews consider themselves zionists.
Also, what the white-identity folks and others don't seem to comprehend when they are listing off all the bankers of Jewish descent is that these men are only Jewish by birth. They have NO religious affiliations with Judaism as a whole, and they are actually occultists. In fact, the elites are just as keen on destroying jewish people as they are to destroy Christians and Muslims. They have no loyalties or affiliations to any one culture or religion. That is why it is absurd when certain people make such broad claims that the whole thing is a "Jewish Conspiracy". Utter nonsense. Most Jewish people are victims of the elites, just like the rest of us.
HT: Brandon Smith @Alt Market.com
It seems the Third Reich missed that subtlety.
Because Judaism and Zionism are one and the same.
They are the exact same entity. Just different words are used in order to escape the wrath of those evil ones that resent being called out.
http://thezog.wordpress.com/who-controls-the-federal-reserve-system-part-1/
nobody ever said Hitler was smart
but demogogues don't needs intelligence anyway
intelligent men will probably never be good at rabble-rousing, they just can't speak to the masses on the same level
Whatever it is that you're on, I want some of it...
True. Been pointed out many times here at ZH. Worth repeating. But I think Soros, Blankfein, Dimon are run of the mill amoral atheist bloodsucking sociopaths.
Yet not one Jew is behind bars. Only their victims are in jail.
Not one? Ponzi-king Bernie Madoff is in jail.
Yup, but look how long it took to have the SEC take a look, more than a decade.
Bang on. Plus one!
Actually, he was not telling the truth...
http://thezog.wordpress.com/who-controls-hollywood/
Let me ask two dumb questions, here.
First, were gold or silver coins used as money during the Weimer years? Did the people who had PM use them successfully to buy the goods they needed?
Second, on an earlier thread somone mentioned buying a house with a pound of gold. Today, is it possible to do this? Could I buy your house, if you agreed, with gold, completely bypassing the banks, etc.?
Good questions. I don't know the answers but I'd bet a pound of Gold that in the Weimar years those with PM's could exchange it for goods.
And today, if you tried to buy a house with a pound of Gold, the SWAT team and IRS would be on your heels for being a "terrorist" or a "drug dealer" for not going through J.P. Morgan, CITI, or BOA.
Don't inform them! Contracts to be denominated in U$, but both parties arrange their valutation for the bag of gold which actually is exchanged.
If really you want to know the truth...
http://thezog.wordpress.com/who-controls-the-federal-reserve-system-part-1/
Remember Weimar
You forgot Wells Fargo
During the weimar years, there's a story of a waiter in a hotel being tipped a gold coin - and then buying the hotel with it. Anyone who came into gold or silver - or foreign currency - had a literal fortune fall into their hands.
@boodles. of course you can buy someone's house for whatever they are prepared to accept for it. People often swap houses, for example. No money involved.
But you've forgot to mention the hyperinflation was chiefly caused by the International bankers' criminal act of shorting mark by borrowing it like there I was no tomorrow that caused huge printing in the first place. Hitler was right about that period of financial history.
Hitler was right. Because the Jews were printing themselves money, buying up all the food, and starving the good German people to death in their own country... Same as they're doing to Americans today...
http://thezog.wordpress.com/who-controls-the-federal-reserve-system-part-1/
Remember Weimar
If anyone deserves to be banned, it's you.
You want to ban the 1st amendment...
You have a problem with the truth...
It doesn't matter to you that the Jew have been committing crimes against humanity for thousands of years but refuse to accept the consequences time and time again..
You are either a Jew or you are Jew sympathizer...
I have no sympathy for you or your kind... Go print yourself some Bitcoins and buy some AAPL...
http://thezog.wordpress.com/who-controls-the-federal-reserve-system-part-1/
Remember that karma will eventually catch up with you and your tribe...
No, I would like to see an obvious, johnny-one-note racist banned from a forum that has banned other, far more valuable members of community, for less.
Also, the fact that you don't understand that the first ammendment doesn't apply to this forum underscores the shallowness of your understanding of the world.
OF COURSE... THE FIRST AMENDMENT, FREEDOM OF SPEECH, NEVER APPLIES WHEN PEOPLE TELL THE TRUTH ABOUT JEW CRIMINALS...
http://thezog.wordpress.com/who-controls-the-federal-reserve-system-part-1/
Remember that the word "Jew" is not a racist remark, it has nothing to do with genetics - it has everything to do with an evil ideology that puts criminal counterfeiters above the common working man that is simply trying to make a better world... So go shove it where the sun doesn't shine...
I totally second Tinky's vote to ban this Dbag, rememberweimar.
wading through trash like this is seriously degrading the credibility of the ZH community.
Yes, freedom of speech must be thrown in the trash when someone tells the truth about those that first steal and second want to preserve that status quo... You people are not nearly as brilliant as you believe yourselves to be... And those of you who are really brilliant are not telling the truth, the whole truth and nothing but the truth...
But I will continue to speak the truth... For the innocents that have no voice...
And those of you that know you are guilty, well, apparently you've not much of a conscience...
Wild Theories,
With all due respect, you should stop from reading his posts, not try to stop others from reading them.
He's an Israeli plant going after zog.com.
Notice how EVERY link is to the same site.
Even the Stormfront morons can make an argument. All he offers is childish namecalling.
ISRAELI PLANT ALSO TRYING TO DISCREDIT ZH
Ignore.
You couldn't be more wrong. Just because I post a link to an honest website doesn't mean I represent them. And ZEROHEDGE gets a thumbs up for respecting FREEDOM OF SPEECH. Anyone that has a problem with the first amendment, well then stop reading this FOR CRYING OUT LOUD
RememberW,
The ones who fared best were the small minority who had the foresight to exchange marks into foreign money, or gold very early, before the new laws made this almost impossible, and before the mark lost its value. They then slowly cashed that in on marks and found out they could buy almost anything for next to nothing, even their neighbors services or good. Even their neighbors daughter in some rare cases. And you do know who and who took Germany out of the depression in a few short years while the rest of the world remained in it.
The vanishing point of currencies' value is coming at hand, no different than Germany's then. With Japan, China and USA creating coin out of thin air for years it will come home to roost one of these days and people will be eating dogs again for a time until somebody changes policy and makes currency viable again, usually with smoke and mirrors, but who cares as long as we are confident it is worth something.
Sad to realize most of humanity are caught in the grips of having to have money to survive, when for many in the past our planet provided the stuff to survive...
We have alot of deer around here. Hoping we dont have to convert to dogs for a while.
The problem isn't that money is being printed... The problem is that it's being printed by the Jew for the Jew... Instead of by the people for the people...
http://thezog.wordpress.com/who-controls-the-federal-reserve-system-part-1/
Remember Weimar
Don't you think touting "thezog" website becomes a little tiresome after about the fiftieth time? One of your fellow travelers is going to accuse you of being a zionist mis-info agent if you're not careful ;-)
We never get tired of you trolls... You keep us amused!
This will be exactly the second comment I've made on this thread, your number of asinine comments I've lost count of. So who is trolling here and who is this "we" and "us" you're now talking about? You little Hitler Youth-types run in packs like wild dogs or what?
And are you the Big Dog in this pack or the little flea infested mongrel who starts the shit up and then runs off with his tail between his legs?
We are not concerned with this particular thread, you have been trolling here for years... So why are you so butt hurt?..
Why are you looking at my ass?
Excuse me... I am standing in front of you, not behind you... I was just assuming that the pool of blood on the floor that appears to be running down your leg... Has it's origin from your man hole...
Remember don't dish it out if you can't take it
So you're saying you have metophorically fucked me in the ass until I bled or you assume someone else has.
Typical fantasizing nazi, sadistic and queer with a little blood mixed in for good measure.
Your fantasies dear are indeed... entertaining... Please... Do continue...
Dude, Don't feed the troll. Its our newest 5 week old attention whore. Sounds like all the others with their sanctimonious wise guy antagonisms. Typical saturation comment bombing totally destroys the thread. I'll put in the call for Tyler to ban this cunt.
Now YOU are one of the better trolls on ZH! I remember dealing with you in the past. You never address the issue. So here's a few links for our readers that want to know the truth.
http://justice4germans.com/third-reich/
http://justice4germans.files.wordpress.com/2013/08/life-in-the-third-rei...
I say bring back the Deutschmark and the Gold Standard.
End Central Banks, paper PM jiggering, ETF's, HFT, and restore the rule-of-law.
As in the 1930's it is going to take a lot of dead people and violence to restore sanity, unfortunately.
Violence is not required or recommended... We the people simply have to take our money printing presses away from them... They can all be arrested peacefully... But I would suggest that we start today...
Remember that education and negotiation are the most dangerous of weapons
Election day
It's why Ben Bernanke told his son to take out a school loan owing over $400,000.
Berna know his son can pay the loan back in worthless dollars after it triggers hyperinflation.
http://thezog.wordpress.com/who-controls-the-federal-reserve-system-part-1/
I would like to buy a $1 trillion deutsche mark and a 1 trillion Zimbabwe note to frame on a wall.
They never made a $Zim 1Trillion note - they went straight to $Zim 10 Trillion, ending at $Zim 100 Trillion
http://houseofthemoon.com/zimbabwecurrency2/set2012x.jpg
the full series has 27 notes
the trillions:
http://i00.i.aliimg.com/wsphoto/v0/1119758788/-font-b-Zimbabwe-b-font-20...
An overview of Zimbabwe note printing
It got quite complicated with cheques and banknotes and more banknotes....
http://www.banknotenews.com/files/tag-zimbabwe.php
The old Yugoslavia also has some nice notes with lots of 0's from the 80's. More variety than the $Zim notes
http://www.atsnotes.com/catalog/banknotes-pictures/yugoslavia/yugo-128.JPG
Unfotunatly all central banks are not willing to learn and listen to what history tells. So we are doomed to re-runs the desasters over and over again. Just a few examples from the nearer past: Zimbabwe, Venezuela. If ones looks into "This time is different" one can find a lot of examples which just tells the same. "It's the same brutal stupidness as ever". That's the sad but poor truth....
The Central Bankers know full well that they are committing crimes... That is, after all, their nature...
http://thezog.wordpress.com/who-controls-the-federal-reserve-system-part-1/
Someone loan me some more down arrows, quick! Remember-the-nazi-weimar got all of mine!
I knew this thread would bring out the heavy dogs... The baddest of the bad ass trolls... And I'm still waiting for even just one of them to man up... And admit that what their tribe did to the Germans with the money printing press that they stole from them was way beyond just a mere war crime... And that THE REAL TRUTH IS THAT THE JEW NEEDS TO GIVE WE THE PEOPLE OUR MONEY PRINTING PRESS BACK...
Remember Weimar and remember that Karma always comes back to you...
Indeed, the empire's homeland in the former republic is quite different than interwar Germany. In those days a large proportion had gardens and had subsistence farming skills, unlike the vast majority today, including many who "farm" but don't have a vegetable garden. In the fall of the USSR, socialist dysfunction for so long had caused large numbers to have family gardens and the ability to deal with frequent power outages, which greatly eased the pain of that financial collapse.
In 1922, electricity was a new thing and its absence was only a minor inconvenience for the vast majority. Today, without electricity everything comes to an immediate halt, except for a few things that can run on generators, for a little while, until their fuel stores are gone. No society has ever been so dependent upon electricity and so helpless without it after even a few hours, and especially days. This will cause the collapse of the US economy and society to accelerate unbelievably when the money dies here and all the supply chains crumble for: power generation, fuel distribution, water pumping, sewage treatment, and everything else beyond barter. The results will be just as deadly as the worst strain of obola. Oh, by the way, such a pandemic could be the trigger that kills the dollar, for a doubly deadly combination.
Meanwhile, all but a few continue to whistle past the graveyard. We can only hope that enough who remain will realize that all the pain was caused by what government did to society, and that they will prevent it from having the opportunity to do it again.
Life, liberty and persuit of happiness. To secure these rights, governments are instituted among man. Most are familiar with these words. But very few seem to understand that as soon as government goes beyond simply "securing" these rights, it then violates them. Also, few understand, as Thomas Jefferson did, that all the government needed to "secure" these rights exists at the most local level, or in what he called the "ward". Only when the people of a ward feel they need an alliance with another ward for something like a common defense, should they allow one to form, and only for so long as it is needed. In those situations, particular caution should be taken to avoid any form of leader emerging over that alliance, to form the root of the next tyranny which always emerges from centralized governments that then become an evil beast known as "the state".
To understand how a stateless society would work, read Murray Rothbard's "For A New Liberty", available free at mises.org
Anony, thanks. The Germans that lived in the cities were the hardest hit. Those in the small towns had a small plot of land a short distance away to raise crops. They also had a milk cow that produced fertalizer and beef steers and did the plowing too. No car, everything within healthy walking distance. The male of the family usually had a full time job that they could do with out if they had to survive.
Weimar ended up printing their currency only on one side to save ink. With us they won't even print, it'll all be digits on computers to same "Them" money.
Yep, printing electronic digits could more easily create a situation far worse than Weimar, in less time... Forcing people to use electronic money will likely be about as messy as any attempt to take our guns.
Thanks for reminding me of those facts. I need to reread Adam Fergusson's "When Money Dies". It's been a while, and it will probably be even more disturbing than the first time. Would have made a good Halloween read.
A collapsed currency makes imports nearly impossible to secure. Our electrical production is not dependent on imports. I am having trouble understanding the mechanics of your thesis.
A collapsed currency also loses its value as a medium of exchange at the local level. Here are the mechanics. The international reserve currency outside the country floods back to buy whatever it can, while it still can. Prices will increase and people will start buying more to get ahead of this, freeing money from savings and giving it far higher velocity. This huge volume, plus the far greater velocity will drive the collapse in the value of the dollar, even without the money printing, as in Germany's case. However, odds are good that politicians will take control of the currency (directly or indirectly via debt bought by the Fed). They will print to pay government payrolls and entitlements in an effort preserve their political power, until the crack-up boom and susequent final currency collapse are complete.
Without a medium of exchange to support a developed economy, modern supply chains will collapse. Probably the most important of these is electrical power generation. Without that, the collapse of society will rapidly accelerate.
Gotcha, thanks. However, we do have decent natural resources here in the US and would presumably fare better than say Japan in the same scenario.
Granted, in the land soon to be formerly known as "the US" a lot of resources are close at hand. Without predatory and parasitic central governments (federal, state or county) to claim ownership of these resources or restrict their use, the people will eventually have a far higher standard of living than they can even imagine today. How long this will take depends upon how much capital is destroyed in the death throes of central governments. The key to societal success is recognition of property rights and an efficient system of securing them. Rothbard goes into all that in "For A New Liberty".
I gave you a thumbs up
Um.. Actually... The people at the Federal Reserve ARE OUR POLITICIANS...
The corruption and fall of The Weimar Republic. Guess who led the way: http://www.realjewnews.com/?p=40
Recommended reading, full of truth about what happened then and how it applies to what's happening now...
Aren't we all forgetting it's easeir to push a wheelbarrow full paper money than a wheelbarrow full of gold or silver? Our rulers are just trying to preserve our strength for when Eastasia invades.
Eastasia is never going to invade the Federal Reserve because the Federal Reserve is what keeps America weak...
^ ISRAELI PLANT ^
^ stupid Jew troll ^
This turned out to be the most boring thread, ever.
Trolling, Trolling, Trolling.
Someone here is looking to inspire jew bashing remarks.
For sinister reasons no doubt.
Free Francis_Sawyer
PAID ISRAELI AGIT-PROP.
Someone here is attempting to wake people up to the truth... We can't have that now can we...
Tell the truth... You guys don't want to give us our money printing press back, do you?
Remember Weimar will always outsmart you, even there is only one of him and hundreds of you, he will always win because he speaks the truth
Most are NOT paid. They are given scholarship points from NatanYahoo.
An excellent article, but one that nevertheless refuses tio face the fact that the world's central bankers are in it for themselves, and not their countrymen (" the most important monetary lesson that central banks, once upon a time up through the present day, refuse to learn."). A syndicate led by none other than the spiritual leader of American central banking, Alexander Hamilton, bought up "worthless" Continental debt for pennies on the dollar and then had laws passed to be reimbursed 100 cents on the dollar- in gold. The present Fed's MBS repurchases amounts to the same thing, and similarr fortunes can be reaped on the backs of future generations as lomng as new debt is created.
An excellent article, but one that nevertheless refuses tio face the fact that the world's central bankers are in it for themselves, and not their countrymen (" the most important monetary lesson that central banks, once upon a time up through the present day, refuse to learn."). A syndicate led by none other than the spiritual leader of American central banking, Alexander Hamilton, bought up "worthless" Continental debt for pennies on the dollar and then had laws passed to be reimbursed 100 cents on the dollar- in gold. The present Fed's MBS repurchases amounts to the same thing, and similarr fortunes can be reaped on the backs of future generations as lomng as new debt is created.
Hyper-inflation has long been argued as the ultimate end of debt ridden nations. Keynesians don't buy the argument, Austrians swear by it. We are all on the verge of finding out just who is right.
http://www.globaldeflationnews.com/anatomy-of-a-bubble-how-the-federal-r...
As always with an article written by a Mises Monk, I'm left asking ... if not fiat (allowing their derogatory use of the term ... but reminding you, all trading promises are fiat ... people make trading promises out of thin air) ... if not fiat, what?
I hear of Ron Paul's (a Mises Monk) call for "sound money". Just exactly what is that?
I hear the Mises Monks call for "gold backed" money. Just exactly what is that? How does such money come into existence? How does the amount needed change dynamically with population and propensity to trade? What happens if the additional amount can't be obtained? Does gold supply throttle trade ... or does trade throttle gold supply? It has to be one or the other because you can't have the value of gold bouncing around between the beginning and ending of a trade.
And of course, there's the obvious ... if you're going to "back all in-process trades" (which is what money is ... a convenient substitute for barter that happens over time and space) ... if you're going to back all those trades, how much gold do you need?
What do you when you run out of gold? Stop trade? Revalue the gold?
To revalue it means to reward savers and penalize traders. Is that really what you want to do to have a robust vibrant economy? Thus, it results in more savings and less gold in circulation (once someone takes their "money", converts it to gold as guaranteed, and puts it in their own vault, it's no longer available for backing trades.) Such a process is deflationary. The obvious result is trade gets snuffed out and the system locks up.
And with this so-called sound money, what is the proper rate for inflation? (the obvious answer is ZERO but that doesn't seem to be what the Mises Monks think).
Good thing I've never held my breath waiting for these answers.
Todd Marshall
Plantersville, TX
P.S. It's been a long time since I read that book but as I recall it said it took a very short time for the reset to occur ...like in six months all was well again in paradise. The book said nothing about the people who got clobbered in the reset. I guess that's because by the time of the reset, everybody had already been clobbered. We should also study Hugo Stinnis who gamed the system.
In 1963, Murray Rothbard's monograph "What Has Government Done To Our Money" addessed nearly all of these questions. It's available free in text and audio format at mises.org. Let me know if that misses anything and I'll refer you to Murray's best other work for that.
Suppose that makes me a Mises Monk too, or even (shudder the thought) a Rothbardian. Those are labels that I would be extremely honored to wear. After all, the Austrian school of economics is the ONLY one not to have been discredited by the test of time.
Thank you for the kind label
PS: the Weimar experience is going to pale in comparison to the collapse and reset the USA will experience. The people, soon to be formerly known as Americans, who survive the experience will be far more fearful of a repeat than the Germans are of theirs. Lets hope they're wise enough to prevent any form of central government from rising from the ashes to again be a parasite upon mankind.
http://www.texemarrs.com/062004/soviet_gulag.htm
You always get a reading assignment from Mises Monks ... never an answer.
Because the questions you asked have already been addressed 50 years ago. If you want information, then consume it...it you want spoonfed answers, then keep asking for easy answers - someone will most certainly give them to you.
I bought and read a few of the books. All they did was make me wish I could confront the authors with the questions. The books were focused on why people enter into trades and the prices of things. Neither is any concern of the manager of the medium of exchange. In just this conversation, more has been written scolding me for asking the questions than would have been necessary to answer them. If the answers need to be longer than that, it just confirms what I already kinow about Mises Monks. They are wordy but not wise.
BEEEEP!! BEEEEP!! ----TROLL ALERT!---- BEEEEP!! BEEEEP!!
This has been a public service announcement.
Don't waste your time on withglee. He is a garden variety troll. He is unmoved by mere facts, and will continue to spew nonsense unabated.
Same reaction I always get. Accused of being troll. No answers. Pretty amazing.