What's Hyper Inflation
01-27-2009, 10:02 PM
#7
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It's a little frightening. I have a 1914 5 mark piece, it's solid silver. I also have a 1922 1 million mark piece, it's plated zinc. And in their respective times, the 5 mark piece was worth more. And the same thing could happen here.
01-27-2009, 11:05 PM
#8
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Originally Posted by jaguarx7' post='915467' date='Jan 27 2009, 11:02 PM
It's a little frightening. I have a 1914 5 mark piece, it's solid silver. I also have a 1922 1 million mark piece, it's plated zinc. And in their respective times, the 5 mark piece was worth more. And the same thing could happen here.
that's because one of them is money and one of them is imaginary. Its frightening if you are the guy holding the zinc (or paper/cotton), not so frightening for the guy holding the silver
I have studied Weimar in great detail, i actually use it in my arguments very regularily (I've mentioned it a few times in my blog), I often hear "you can't have hyper-inflation and a depression at the same time" and weimar is always my example. Of course more recently I guess Iceland would be an equally good argument, however weimar still applies better in respect to helicoptering money to keep the banks afloat.
