1923 Germany -- is this what's coming?
Posted April 23rd, 2008 by IamVoting4RonPaul
output
Germany in 1923 -- inflation skyrockets and prices double every two days.
The mark soon falls to 17,000 to the dollar, it drops to 160,000 to the dollar by July, and unemployment combines with inflation to create social unrest; 1.5 million are unemployed, 4.5 million employed only part time, yet prices continue to rise, and by July 30 the mark has depreciated to 1 million to the dollar. The mark falls to 13 million to the dollar in September, to 130 million to the dollar by November 1, and to 4.2 billion to the dollar by the end of November. Many Germans have never accepted the legitimacy of the Weimar Republic, and 1,783 printing presses churn out bills. Prices rise so fast in the disastrous hyperinflation that workers are paid daily—and then several times a day. Middle-class savers and pensioners are wiped out, formerly affluent Germans dispose of their possessions in order to eat, German peasants refuse to part with their eggs, milk, butter, or potatoes except in exchange for articles of tangible value, and they fill their houses with pianos, sewing machines, Persian rugs, even Rembrandts.
The most severe known incident of inflation was in Hungary after the end of World War II when, at its peak, prices doubled every 15 hours).
Bookmark/Search this post with:
Patriots : surviving the upcoming collapse
This book opens with a hyperinflation scenario . This is a fictional book but has tons of great information on what you might need to survive. Author James Wesley Rawles.
http://www.amazon.com/s/r...
Hopefully this link works !
Sooo...
I gather that I have until possibly 2010 before all this comes down?...I hope so...But I have a sinking feeling that it will be a slow spiral downward at first, beginning two years ago...It just feels rapid to us because we actually pay attention...
I also have the terrible feeling that within that time they are going to unleash some lab created virus upon us...Don't know why I think that..Just a gut feeling.
Kat, I don't know what
Kat,
I don't know what your religious beleifs are, but I will say this.. if you try to prepare the best you can.. God will bless you! all he asks is that you draw closer to him and do the best you can.. he will watch over you! The Lord helps those who help themselves! don't get discouraged.. just keep plugging along.. before you know it your set! ... Something else I want to say to everyone here... Please buy and stock extra . as Christians and beleivers we need to help those in our communities when this thing hits.. even when Ron Paul becomes President--- we will still go threw bad times.. the difference will be we won't have to worry about executive orders!
as for me and my home, we shall worship the LORD
C'mon kat that sort of thinking doesn't do you much good.
Just brings you down. Keep doing what you're doing.
___________
Lisa C.
www.women4ronpaul.com
Thanks Lisa...
Kind words...I'm just not really myself tonight...Guess I'm just over tired...and reading too much Science Daily about new and deadly virus' that are emerging in the world...
I'll be better after a good nights sleep. And I have alot of silver questions for you when I'm more alert...
Stay tuned!
I'll be here.
___________
Lisa C.
www.women4ronpaul.com
There have been several threads in which the life span
of our monetary system that began in 1971 was set at 20-40 years. Here in year 37, with the turmoil that has begun to unfold, is it even possible that massive stimulus packages and buyouts will get us to year 40?
Susan... I think things will
Susan... I think things will really start to unravel economically by november.. when the economy breaks down it is just a matter of time till the idiots in the whitehouse and the CONgress get us into a bigger war!
this same scenario has happened threw out history! 1 year from now it will be bad!
as for me and my home, we shall worship the LORD
That timeframe seems to fit.
I don't think 2010 is going to be a very good year.
___________
Lisa C.
www.women4ronpaul.com
I agree.
and I am sick thinking about it.
We can all say what needs to be done, but who here led by example today?
Stay busy by preparing -- it helps with the stress.
I have about two years worth of rice and beans now and I've been busy with my new food sealer and pressure cooker. My next project is putting together a "store" of non-hybrid seeds and reading up on canning.
___________
Lisa C.
www.women4ronpaul.com
Better than canning
build a solar food dehydrator
Will look into it.
Do you eat them dehydrated or do you rehydrate?
___________
Lisa C.
www.women4ronpaul.com
Ever had beef jerky?
same thing.
We can all say what needs to be done, but who here led by example today?
I was wondering about fruits and vegetables.
Sorry I didn't make myself clear.
___________
Lisa C.
www.women4ronpaul.com
you can rehydrate them.
or eat them dehydrated.. Espically fruit.. Think raisins.
Now as for vegtables...Not sure how good dehydrated asparagus would be on the palate..but you get the idea.
We can all say what needs to be done, but who here led by example today?
Better than having nothing I would guess.
Thanks.
___________
Lisa C.
www.women4ronpaul.com
Yes, Weimar is coming to America
They were unable to repay the debts to the Allies that were racked up as a result of WWI. They decided to inflate their way out of it, just print more money without anything to back it up. The similarity between the Weimar Republic in 1923 and the USA in 2008 is the monetization of bad debt. In Germany, it was war reparations and in the USA it's credit default derivatives (which hardly anyone will speak of). We are going down the Weimar road (economic contraction plus inflation) and that is a fact. The severity? We'll know soon enough.
OTC Derivatives
Today there were some great comments regarding OTC derivatives at http://www.jsmineset.com/. It is well worth the time to check it out. Here is a sample:
Jim Sinclair’s Commentary
Please read this carefully and consider the implications. It is critically important you understand this.
Do you believe the dollar is a better wager on the future than gold because that is what a gold seller is saying?
The Fed can never go broke as it can write its own capital.
What a central bank can do by destruction of the central bank’s balance sheet is kill their currency.
This is a totally backwards way to announce how much money is loaned at the Begging Bowl loan window of the Fed. No bank or commercial entity here is buying Treasury Instruments and delivering money. The only thing the borrowers are submitting is the pittance rates they will pay for the perma-loans being rolled over every 28 days. You would be amazed how many writers say that there is no expansion of monetary aggregates because of Treasury issues. The fact is that it isn't an auction of Treasury instruments for cash.
This is a junk sale of valueless OTC derivatives with the Fed as the buyer for rather new but real cash to the financial and commercial entities. This auction means junk is coming into the Fed. This auction means cash goes into the near or bankrupt entities.
Link to referenced article:
http://money.cnn.com/2008...
Does the book say how
to best get through this hyper inflation?
Gold, Silver, goods to barter with and, of course, food.
Sorry, it was a newsletter, not a book (a link to the website is below).
___________
Lisa C.
www.women4ronpaul.com
I haven't finished
"when Money Dies" but my way of coping is having silver and gold on hand as a medium of exchange. I believe that is why it is important that we have this. A silver dollar will go very far in purchasing power in tough times, I believe.
Healthnut4freedom
"Trust in the Lord with all thine heart; and lean not unto thine own understanding. In all thy ways acknowledge Him, and He shall direct thy paths." Proverbs 3:5,6
When Money Dies
I am reading the book "When Money Dies" about this very thing. It demonstrates the effects of just printing money out of thin air on a country's money. There is a lot of history and information in this book and it hits too close to home. It shows how easy it was for Hitler to come into power.
Some quotes from the book:
"This is, I believe, a moral tale. It goes far to prove the revolutionary axiom that if you wish to destroy a nation you must first corrupt its currency. Thus must sound money be the first bastion of a society's defense."
"Nevertheless, it was the natural reaction of most Germans and others to assume not so much that their money was failing in value as that the goods which it bought were becoming more expensive in absolute terms; not that their currency was depreciating, but - especially in the beginning - that other currencies were unfairly rising, so pushing up the price of every necessity of life. It reflected the point of view of those who believe the sun, the planets, and the stars revolve with the moon around the earth."
"If prices went up, people demanded not a stable purchasing power for the marks they had, but more marks to buy what they needed. More marks were printed, and more and more."
"Thus were the Government's plans drawn up, wilfully, and simply, for financing the war (WWI) - not by taxation, but by borrowing; and with the printing press as the well to supply both the needs of the Government and the growing credit demand in private business."
There is a lot more but can you see the parallel? Why can't we review history and avoid this?
Healthnut4freedom
"Trust in the Lord with all thine heart; and lean not unto thine own understanding. In all thy ways acknowledge Him, and He shall direct thy paths." Proverbs 3:5,6
Sounds like Stimulus Checks and Bailouts
all we need is a nice Dictator....
History, we are doomed to repeat it!
Quotes from another book:
" …a law professor at Harvard and The University of California, Berkeley, who experienced the Weimar Republic hyperinflation, said, 'It was horrible. Horrible! Like lightning it struck. No one was prepared. You cannot imagine the rapidity with which the whole thing happened. The shelves in the grocery stores were empty. You could buy nothing with your paper money."'
“Again, the current circumstance will evolve into a hyperinflationary depression, then a great depression. Although such is not likely much before 2010, or after 2018, the financial end game for the current markets will tend to come sooner rather than later and will break with surprising speed when it hits.”
“2008 will favor an incumbent party loss, i.e. a victory for the Democrats.”
___________
Lisa C.
www.women4ronpaul.com
The fact that we are experiencing
supposed food shortages should tell us we might be closer to this than we think. I wonder what can keep our country from experiencing this same terrible tragedy.
People need to wake up while they still have time.
Healthnut4freedom
"Trust in the Lord with all thine heart; and lean not unto thine own understanding. In all thy ways acknowledge Him, and He shall direct thy paths." Proverbs 3:5,6
More quotes:
Sorry they're not from a book but from a newsletter -- http://www.shadowstats.co...
“It is this environment that leaves the U.S. dollar open to potentially such a rapid and massive decline, and dumping of U.S. Treasuries, that the Federal Reserve would be forced to monetize significant sums of Treasury debt, triggering the early phases of a monetary inflation. In this environment annual multi-trillion-dollar deficits rapidly would feed into a vicious, self-feeding cycle of currency debasement and hyperinflation.”
“Given the extremely rapid debasement of the larger denomination notes, with limited physical cash in the system, existing currency would disappear quickly as a hyperinflation broke. From a practical standpoint, however, currency would disappear, at least for a period of time in the early period of a hyperinflation.”
“Barter System. With standard currency and electronic payment systems non-functional, commerce quickly would devolve into black markets for goods and services and a barter system.”
“Gold and silver both are likely to retain real value and would be exchangeable for goods and services. Silver would help provide smaller change for less costly transactions.”
“In such a circumstance, gold and silver would be primary hedging tools that would retain real value and also be portable in the event of possible civil turmoil. Also, at some point, the failure of the world’s primary reserve currency will lead to the structuring of a new global currency system. I would not be surprised to find gold as part of the new system, in an effort to sell the system to the public.”
“I still look for U.S. stocks to take an ultimate 90% hit, peak-to-trough, net of inflation, during this period.”
___________
Lisa C.
www.women4ronpaul.com
Ron Paul
Where are you?
Do we need to get a
Do we need to get a Batman-like signal to summon RP? Flash a symbol of the Constitution, perhaps? LOL
haha
Fortune Favors the Bold
I can just picture a blinking red phone in that 70's style office.
What's that you say? Hyper-inflation? To the blimp!
Scary stuff!!!
Scary stuff!!!
Inflation and Deflation...
are both characteristics of unsound currencies. I pray that we do not see hyperinflation, but I think that deflation could be much more of a problem long term. Either way, the underpinning of our economy is built totally on consumption. This will not hold out forever and the adjustment to something sustainable will be very turbulent. It will be made worse by the fact that the bueracrats in Washington think that they can micro-manage the economy.
Yes it is. SUPPORT OUR
Yes it is.
SUPPORT OUR FOUNDERS' AMERICA
Support the Constitution of the United States
It's not that simple
Americans are so deep into debt that we'd have to pay off most of the debts before this starts, and there isn't enough printed money to pay off the debts. More likely, we'll have FAMINE. The Asians will probably buy all our food over the next 6 months, then the crops will come in short and the store shelves will be empty.
No need to actually print
The vast majority of the money supply is not in the form of actual bills, it is in the form of electronic entries in bank accounts and such. The government need not actually print the money to inflate the money supply and pay off the debt with worthless paper. They can simply create the money electronically. Push a button and voila!!
Very True
What better way to control wealth than to just move a few electrons to and fro. Debit this account, credit another account. Better yet, just credit certain accounts and make every other account worth less. What better way to redistribute wealth. Do any of these moves put food on the table, increase the GDP or benefit mankind in any way? No, just a transfer of wealth. They just delay the inevitable and make the extremely rich more so.