Saturday, May 23, 2009

Hyperinflation Much?

The Weimar Hyperinflation: Time to get out the wheelbarrows?

""It was horrible. Horrible! Like lightning it struck. No one was prepared. The shelves in the grocery stores were empty.You could buy nothing with your paper money."

"Some worried commentators are predicting a massive hyperinflation of the sort suffered by Weimar Germany in 1923, when a wheelbarrow full of paper money could barely buy a loaf of bread. An April 29 editorial in the San Francisco Examiner warned:
"With an unprecedented deficit that's approaching $2 trillion, [the President's 2010] budget proposal is a surefire prescription for hyperinflation. So every senator and representative who votes for this monster $3.6 trillion budget will be endorsing a spending spree that could very well turn America into the next Weimar Republic."1
In an investment newsletter called Money Morning on April 9, Martin Hutchinson pointed to disturbing parallels between current government monetary policy and Weimar Germany's, when 50% of government spending was being funded by seigniorage – merely printing money."

Yup, saw it two years ago.


Blogger Devin said...

The only thing that amazes me is that it hasn't happened already!! best as always!!

23/5/09 12:14 PM  
Blogger nolocontendere said...

It sure was plain as day several years ago, but again my prognostication abilities were sorely lacking, and I never would have guessed how many bandaids they could come up with to cover the gaping wound. The best I can come up with now is that the things we need will hit the stratosphere in price while the crap we don't need will become dirt cheap. When? probably two months from now at the latest.

23/5/09 6:35 PM  

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