Weimar Inflation in America

// added May 29, 2008 // 6 comments //
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Hawkmang

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http://www.kitco.com/ind/Turk/turk_may262008.html

By James Turk

(Excerpt from main article)

Crude oil is $132. Corn is $6.The cost of everything is rising. Inflation is worsening, and it’s not hard to understand why. M3, the total quantity of dollars, is now growing by 17% per annum. Weimar inflation has arrived in America.

The Federal Reserve is following the footsteps of the central bank in Weimar Germany. It is the same path taken by many central banks that have issued countless fiat currencies based on nothing but government promises. It is the path to the fiat currency graveyard, and the once almighty US dollar – which long ago used to be “as good as gold”, just like the Reichsmark once held that same exalted title – is knocking at the graveyard’s gate.

Full article at link.
http://www.kitco.com/ind/Turk/turk_may262008.html

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James Turk is the Founder & Chairman of GoldMoney.com http://goldmoney.com/ . He is the co-author of The Coming Collapse of the Dollar, which has been updated for a newly released paperback version, now entitled The Collapse of the Dollar http://www.dollarcollapse.com .

Photo from Bernd Widdig's book “Culture and Inflation in Weimar Germany.”
Reprinted at www.kitco.com
  1. groups:
    News,   News and Politics,   Money
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    News,  News and Politics,  US,  Economy,  13 more

6 comments // Weimar Inflation in America

  • 1percent
  • Hawkmang
    • 0
      Hawkmang  

    • jubal, yes he did and it was a great book! And as Diamond said, it's our choice. Hopefully, we will wake up from this mass delirium and start the healing process before it's too late.

    • 1 year ago
  • jubal
    • 0
      jubal  

    • Jared Diamond wrote a book called "Collapse" and he discusses the many reasons civilizations rise and fall.

      Our collapse is coming.

    • 1 year ago
  • plusaf
  • plusaf
  • Hawkmang
    • 0
      Hawkmang  
    • Image...

    • Vierotchka, great point. Very different situations indeed. (I can't believe your mother lived through that terrible experience! She must have some stories!) However, whether imposed (as in the case of post-WWI Germany) or voluntary (as in 18th century France which gave rise to Napoleon or present day Zimbabwe), rapid increases in money supply that are not countered with growth in the production of goods and services proves catastrophic.

      The fact that the Federal Reserve stopped publishing M3 data (which essentially tracks the total amount of money in circulation) in 2006 is more than a reason for us to raise an eyebrow. When you also consider the recent invention of the "core" CPI (consumer price index excluding food and energy costs) what are we to think? What prices are more important to us than the ones associated with feeding ourselves, keeping the lights on and getting to work?

      Hopefully, we can get this ship turned around. As George Santayana warned, "Those who do not remember the past are condemned to repeat it."

    • 1 year ago
  • Vierotchka
    • 0
      Vierotchka  

    • The situation in America is very different from that which caused the Weimar Inflation in Germany after WWI. Germany suffered defeat in that war, and the Versailles Treaty decreed that Germany should compensate 100% the people and countries devastated by WWI. This totally ruined Germany, the German people were defeated, humiliated, and ruined. This situation is what made Hitler's rise to power possible - he brought back hope and a feeling of self-worth to the German people. My mother spent some time in Germany during that terrible inflation - she was just a child (she was born in 1913) - she was staying with one of her Jewish aunts. She described to me how famine was settling in, how people would dig the earth with their hands in potato fields after the harvest in the hope of gathering a few forgotten potatoes, and how her aunt sold one of her precious Fabergé gold watches for a few million marks in the hope of being able to buy food for the family for a few days. The next day, because of that galloping inflation, the few million marks she obtained from selling that priceless watch were only enough to buy a handful of candles.

    • 1 year ago
  • Angry_Patriot89
    • 0
      Angry_Patriot89  

    • It is a shame people on Current don't care about these issues rather they continue to be distracted by either events abroad that are untrue or simply not worth our time. America needs to be saved. Hawkmang you are a true American. We must join forces with all others who are enlightened to awaken our fellow man and women.

    • 1 year ago
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