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Source link: http://archive.mises.org/9725/there-will-be-hyperinflation/

There Will Be (Hyper)Inflation

April 2, 2009 by

The German hyperinflation was the result of a policy that considered the financing of government debt by an accelerating increase in the money stock as the politically least unfavorable method. It seems that the state of opinion hasn’t actually changed much. Today, there is great public support when it comes to expanding the base-money stock for financing ailing banks, insurance companies and, most important, rising government debt. FULL ARTICLE

{ 53 comments }

John David Galt May 16, 2009 at 4:56 pm

This kind of oversimplification does not reflect well on your site. The main cause of the German hyperinflation was the French reparation demands in the Treaty of Versailles. (Which is not to say the French started it — the Germans did the same thing to them in 1871.)

The main lesson to be learned from 1923 (and from the resulting rise of the Nazi party) is never to hurt an opposing country THAT much while leaving them in power. If you’re going to ruin and humiliate an opposing country, annex and absorb them too.

newson May 16, 2009 at 7:20 pm

not true, john galt. hyperinflation was used to lessen float away the reparation debt – this was a deliberate choice by the germans, they could have stabilized the currency and paid the debt, but that would have been unpopular. much the similar tactic will be used by the us with its debts.

AJ August 11, 2009 at 1:39 pm

This is a very useful articles, however it doesn’t tell you how to protect yourself from hyperinflation, here is how to survive hyperinflation:
http://crisistimes.com/hyperinflation.htm

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