Found this book brought to you FREE by Ludwig von Mises Institute http://www.wolf1168.us/misc/Articles of Interest/When Money Dies.pdf If you want to buy the hard copy (can be handy) you can get it here: http://www.booktopia.com.au/when-money-dies/prod9781906964443.html The book is really short, only 150 pages (plus minus bibliography and covers) can be read in one sitting. Really nice short and concise accounts and compilation of stories of what life like on the street during hyperinflation in Germany, Austria and Hungary in 1920's. PS: Btw I recommend booktopia for your online book purchase, I bought quite a bit from them, they have great selections, great service, great price, prompt delivery.
Thanks for the book chimpanchu. By the way, this is what 20 000 Mark looked like during this hyperinfaltionary period Click on link below to see some other notes during the period http://forums.silverstackers.com/to...ppeal-in-banknotes-during-hyperinflation.html
For those lazy buggers out there who never finished a book in their life, here's some excepts from the book. I'll be posting more summaries later on... More later... yawn... good night.
No, i bought it on eBay. http://shop.ebay.com/i.html?_nkw=(m...e,note)&_osacat=0&_trksid=p3286.c0.m270.l1313
Thanks Chimpmanchu, I always enjoy a good book. I read a little last night and will finish it this morning.
It's a good read that PDF. There's several which are available online freely and it's important to note that tangible items, those with intrinsic value, reign supreme in such an environment. I know many people who don't understand history but look at the likes of Hitler and can only conceive he was an abomination born of evil and nothing more, but the fact is, he was simply a very influential speaker caught up in the maelstrom of this environment and with national pride his primary driver, sought to fix what he saw as a broken, decaying system of corruption. Whilst the means of the end speak for themselves in the reign of the third Reich, the principles of which it was founded were actually based on very moral ideals. It's very important to note that the atmosphere which bore the likes of this movement are against stirring in the world today. Oppression can be a core catalyst of such things, especially in times of crisis. But just imagine what would happen if we were to see the rise of another Hitler to power in the world today with modern components of warfare at their disposal? We do live in dangerous times I think. America is already slipping into decay, their currency debasing heading down this path and fascism becoming the status quo in their country. Very possibly, we have bleak times ahead of all of us, especially if the majority lay in ignorance of the past. Humans have short memories. Just a couple generations easily turn history into myth until the conditions which brought it around are born once more. I personally believe that if this period in history was to be paralleled to any time previous, the early to mid 30s would be fairly typical of this period. Hold on to your butts!
Its scary how similar the situation is. Weimar Germany was overwhelmed with debt due to the war reparations, and one reason their hyperinflation got so bad is that they let it, it was a tactic to get out of the repayments. Who is to say that we wont see America in such trouble that they try and hyperinflate out of it... well we arent that far off actually, if QE isnt inflationary I dont know what is... its a slippery slope once you start on it. And sadly it may be what is required. In Germany there is still very very bad memories of hyper inflation, and barter economies following both the first and second world wars, and thus they have remained conservative in their fiscal policy which is evidenced by their ability to bailout the euro zone countries who are drowning in unsustainable debt. It seems to me the US system, and outlook in general on these matters is broken beyond repair. They need a scare, a real big one, to make them follow a more conservative and sustainable economic model. It needs to be such that generations from now the memories of the collapse will influence decisions for the better.
It will be more than a 'big scare' and it will rattle the world through a fairly brutal sieve. Why do you think that China, Russia, Europe are disengaging from the US dollar at such a rate. They want to get as clear as possible and into a position where they can establish a world currency as quickly as possible when the US implodes. The rich don't care. There are no borders, taxes or moral concerns in the place they live. Like everyone I think, I feel powerless and helpless in the face of the gargantuan meat grinder that is international finance. All of the world problems would be solved if the greed of financiers was abated. Instead they and their political servants imagine new ways to pay lip service to problems of environment, hunger, war, injustice, so they can rip every single cent they can from the band-aid solutions they propagandise. For years I carried a letter from a second war soldier, describing how his friends were killed in a bombing done on the first day of the war at the very railway station, that the day before had hourly freight trains carrying coal, steel and war materials into Germany. How he watched the aftermath of the war as international financiers were reimbursed for the bombing and destruction of their factories in Germany - the factories that before the war they had running at full capacity to produce the German war machine and feed it throughout. Read Smedley Butler's book on the war 'racket' and some narratives on him, to see the financial world's creation of wars for profit. Nothing has changed, all the way to the 'war on drugs', the 'war on poverty' and all the rest of the 'wars' that the 'elite class' wage to continue the numbers piling into their spreadsheets. "I spent 33 years in the Corps, and spent most of my time being a high-class muscle man for Big Business." How war is a racket http://www.amazon.com/War-Racket-An...5865/ref=sr_1_1?ie=UTF8&qid=1294875207&sr=8-1 How financiers tried to make USA a fascist country the first time round. Manipulating the jobless march on Washington: http://www.amazon.com/Plot-Seize-White-House-Conspiracy/dp/1602390363/ref=cm_cr_pr_product_top The world is inhabited by peasants, aristocrats and royalty and the greed and avarice of human nature ensures it remains that way. By the way - Australia is owned by those powers and we are simply ants on their sugar bowl. If we get too near the sugar they move it. If we get into it they kill us. http://www.serendipity.li/cia/cia_oz/cia_oz1.htm
One question I am not sure of is, is how debt is handled in such situations. If the income is increased as mentioned and the dollar in value is falling. You will end up with more money (fiat) in hand. So if the average Australian had say $300K debt and the general wage increased from $50K PA to say $200K PA due to inflation this would allow a lot of people to pay down debt faster ? I can only assume that interest rates would be increased exponentially to cover this inflation ? So could we see 20% + interest on debt etc... for argument sake. Could anyone provide some details on an expected outcome in this scenario ?
Military dictatorship and tyranny is on the way. It can be seen from the budget spends. War budget keeps increasing. While they wish to cut everything else. Boehner Pushes $100B in Cuts, Can't Name Any Programs to End John Boehner appeared on NBC Nightly News last night in his first interview since being elected Speaker of the House. While Boehner has pushed for $100 billion in budget cuts this year, he failed to identify a single program that could be cut. He was interviewed by Brian Williams. .... Williams: "Name a program right now that we could do without." Rep. Boehner: "I don't think I have one off the top of my head, but there isthere is no part of this government that should be sacred." Pentagon Budget Continues to Grow Despite Budget Cuts Defense Secretary Robert Gates has unveiled a five-year plan that would trim about $78 billion from anticipated spending in the Pentagon budget. Despite the proposed cuts, McClatchy Newspapers reports the military budget will still increase by three percent next year to $553 billion, not including spending on the wars in Iraq and Afghanistan. Over the past decade, the Pentagon budget has risen 65 percent when adjusted for inflation. Robert Gates outlined his plan on Thursday. Robert Gates: "More than $6 billion was saved by our decision to reduce the size of the active Army and Marine Corps starting in FY 2015. Under this plan, the U.S. Army's permanent active-duty end strength would decline by 27,000 troops, while the Marine Corps would decline by somewhere between 15,000 and 20,000, depending on the outcome of their force structure review. These projected reductions are based on an assumption that America's ground combat commitment in Afghanistan would be significantly reduced by the end of 2014 in accordance with the President's strategy." Meanwhile, Robert Gates is heading to China this weekend in order to formally restore military-to-military exchanges. Gates is the first defense secretary to visit China in 10 years. srouce democracynow.org
In hyper-inflationary situation debt can easily repaid quickly as money losing value and a new zero being added onto the bank note. Your working salary will increase exponentially, but still won't match the inflation rate of increase. For example, if hyper-inflation hit Australia tomorrow, a loaf of bread could cost $300,000 easily. Which means you could pay off your $300k mortgage debt with a loaf of bread! But only if you can still earn income from somewhere because in hyper-inflation situation people are losing jobs those who kept their jobs suffer severe pay cut. If you have no source of income, no matter how big or small your debt is you won't be able to pay the debt. And interest rate of debt will rise parabolically as banks try to cover the debt's lost of value by increasing interest rate. In hyperinflation situation, debt is not so much of a problem. The biggest problem to people on the street is buying FOOD and ENERGY!
The banks won't allow it. They call in margins or increase rates/fees to compensate, demand immediate payment or claim your house - assets - commodities - whatever to compensate for the complete loss of value in holding fiat dollars. The biggest mistake you can make on debt is assuming you'll get a free pass on it to those you owe the debt via rapid inflation. The banks will have a backup plan for backup plans to ensure THEY win and YOU lose. That's almost guaranteed. Look around you today to see how the financial system OWNS the government. It'll only get worse when it goes to the wall. I've no doubt many folks are thinking along these lines as a way to 'get rich' and fark the banks. Trust me, it won't work. The very worst thing you can have in your possession when the fit hits the shan in a hyper inflation scenario is DEBT.
For argument's sake: 99% of people would be trading everything they have for the necessaries to stay fed and sheltered - including the 'wealthy' who would be the people with lots of things that people want - from market gardeners to silver stackers (silver is money - easy to divide, value, etc etc). In the case of standing loans - the first goods sale for cash you would pop into the boarded up, heavily armed bank, through the cordon of army and militia volunteers - and pay all your debts with the the money you got for your violin or box of baked beans or 1966 50c piece. It is extremely unlikely you will see this scenario in Australia. More likely, I think, that if the US dollar destroyed the world's markets, cash will disappear, numbers will appear in your ATM and that is what you would use to 'buy' things. Your debt would be translated by the banks who own the financial system, so that the nett effect would be 2-3 weeks of hiding inside, venturing out to trade for food and hoping that no bad boys tried to break in and rob from you. Australia doesn't have the infrastructure that has been put in place in America to deal with an economic crash but it's mostly not needed. We don't have guns, rights, or nothing at all to lose, so a few shots over our heads will put us back inside waiting for the plasma to flicker to life. Later when they're sorting the mess is when they'll call out for your gold and silver and make you surrender it at their price. So the trick is to spend it when you are in the eye of the storm if you're so inclined. Buy the neighbour's house, or the streets, But you would only be able to buy the third of houses that are owned outright by people not banks, and that people can get the titles to hand across. Lots of 4WDs and big TV's for beans though. You'd want a good lawyer on the other side of the storm though.
If you are a renter and your landlord is leveraged and can't pay, will the bank take over and become the landlord? If so, is that a good situation to be in? If not, what would happen to the tenants?
