http://www.lewrockwell.com/sennholz/sennholz19.html
Hyperinflation in Germany, 1914–1923 by Hans F. Sennholz
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How stupendous! Practically every economic good and service was costing trillions of marks. The American dollar was quoted at 4.2 trillion marks, the American penny at 42 billion marks. How could a European nation that prided itself on its high levels of education and scholarly knowledge suffer such a thorough destruction of its money? Who would inflict on a great nation such evil which had ominous economic, social, and political ramifications not only for Germany but for the whole world? Was it the victors of World War I who, in diabolical revenge, devastated the vanquished country through ruinous financial manipulation and plunder? Every mark was printed by Germans and issued by a central bank that was governed by Germans under a government that was purely German. It was German political parties, such as the Socialists, the Catholic Centre Party, and the Democrats, forming various coalition governments, that were solely responsible for the policies they conducted. Of course, admission of responsibility for any calamity cannot be expected from any political party.
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If you ever talked to someone who lived thru that era, you could see fear on their faces. Only stuff was valuable. I remember being told by an old lady: “Each day at lunch time, I would go to Papa’s law office and take the money he collected for services and go buy something immediately. Anything. Didn’t matter what. Things had value; money did not. Papa would do the smae at night when he left the office.” I never forgot that conversation.
I had a fantasy as a child. I bet all kids do. At least kids who want more of what they can’t have. “What if all monopoly money was real?” I’m sure my Mom thought it was very funny
Then as the nerdy bookworm I was, I was on a quest to learn about money. Digesting a few good “iicky nom icks” books — can they be any more boring? — I was a diligent researcher in those days.
I read about the six characteristics of money — medium of exchange, store of value, unit of account, divisible, fungible, and measurable. Learned about how difficulty in barter lead to money. I could differentiate between Commodity, Representative, Credit, and Fiat money. I could define liquidity, velocity, demand curves, and even derivatives. But my young mind blundered on a realization.
It was all monopoly money!
Yes, dear reader, we’ve been defrauded by our own gooferment. Today’s dollar is not the dollar of our parents or grandparents. And, it won’t be the dollar of our posterity.
Fasten your seat belts. The 25% Carter inflation will seem tame after the politicians get finished screwing us.
The only funny thing is that, while every holder of a dollar today is going to be screwed, the biggest holders of dollars is the Chinese Communists. INflation is going to ravage their 5 Trillion Dollars.
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