Comments on: Calling on the Animal Spirits of Inflation: Forcing the Inflation Genie out of the Economic Bottle. Germany Hyperinflation of the 1920s. http://www.doctorhousingbubble.com/ts-of-inflation-forcing-the-inflation-genie-out-of-the-economic-bottle-germany-hyperinflation-of-the-1920s/ How I Learned to Love Southern California and Forget the Housing Bubble Thu, 09 Feb 2012 06:16:36 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: donny http://www.doctorhousingbubble.com/ts-of-inflation-forcing-the-inflation-genie-out-of-the-economic-bottle-germany-hyperinflation-of-the-1920s/#comment-35447 donny Sun, 05 Apr 2009 23:45:35 +0000 http://www.doctorhousingbubble.com/?p=1642#comment-35447 I haven't spent much time studying Weimar Germany. But I've spent about thirty seconds reading the entry on Weimar Inflation in Wikipedia. Much of german industrial and mining capacity was seized by France and Belgium. This was followed by a general strike supported by the government, which supported striking workers with printed Marks. In effect, paid them to not produce. So what were they to buy with those markers? If you look at Zimbabwe, there was an obvious destruction of productive capacity. Point being, that the Zimbabwe government was printing money, yes, but that it was doing this while destroying the nation's ability to produce goods and services on which that money might be spent. Milton Friedman was an idiot. The value of money is not relative only to it's supply, but also to the supply of everything else. I haven’t spent much time studying Weimar Germany. But I’ve spent about thirty seconds reading the entry on Weimar Inflation in Wikipedia. Much of german industrial and mining capacity was seized by France and Belgium. This was followed by a general strike supported by the government, which supported striking workers with printed Marks. In effect, paid them to not produce. So what were they to buy with those markers?
If you look at Zimbabwe, there was an obvious destruction of productive capacity. Point being, that the Zimbabwe government was printing money, yes, but that it was doing this while destroying the nation’s ability to produce goods and services on which that money might be spent. Milton Friedman was an idiot. The value of money is not relative only to it’s supply, but also to the supply of everything else.

]]> By: oilwelldoctor http://www.doctorhousingbubble.com/ts-of-inflation-forcing-the-inflation-genie-out-of-the-economic-bottle-germany-hyperinflation-of-the-1920s/#comment-35413 oilwelldoctor Sat, 04 Apr 2009 04:46:30 +0000 http://www.doctorhousingbubble.com/?p=1642#comment-35413 Hi Dr HB, another good read. Saw an interview from Peter Schiff of Geroge Soros. Two things that got my attention from Soros' coments, Japan actually benefited from deflation; as things got cheaper they could afford more. And that no one knows what will happen to the markets when the government is acting so recklessly. Best wishes Hi Dr HB,

another good read.

Saw an interview from Peter Schiff of Geroge Soros. Two things that got my attention from Soros’ coments, Japan actually benefited from deflation; as things got cheaper they could afford more. And that no one knows what will happen to the markets when the government is acting so recklessly.

Best wishes

]]> By: whiskey http://www.doctorhousingbubble.com/ts-of-inflation-forcing-the-inflation-genie-out-of-the-economic-bottle-germany-hyperinflation-of-the-1920s/#comment-35409 whiskey Sat, 04 Apr 2009 02:51:58 +0000 http://www.doctorhousingbubble.com/?p=1642#comment-35409 So, forgive my ignorance on this but what happened with Germany on 11/15/1923 when the new currency was issued? Did that just wave the wand for the "Marks" and now they have "deutchemarks"? Did they scratch about 6 zeros from the old stuff? Was the old currency non-redeemable? We obviously know that Germany as a country is still around. There's a picture here of uncontrolled hyperinflation but...then what? It's like the old pinball machines and video games when 50,000 was a high score woop woop, now it 50,000,000. Oops, just gave away my age :) So, forgive my ignorance on this but what happened with Germany on 11/15/1923 when the new currency was issued? Did that just wave the wand for the “Marks” and now they have “deutchemarks”? Did they scratch about 6 zeros from the old stuff? Was the old currency non-redeemable? We obviously know that Germany as a country is still around. There’s a picture here of uncontrolled hyperinflation but…then what? It’s like the old pinball machines and video games when 50,000 was a high score woop woop, now it 50,000,000. Oops, just gave away my age :)

]]> By: Norman http://www.doctorhousingbubble.com/ts-of-inflation-forcing-the-inflation-genie-out-of-the-economic-bottle-germany-hyperinflation-of-the-1920s/#comment-35408 Norman Sat, 04 Apr 2009 00:35:37 +0000 http://www.doctorhousingbubble.com/?p=1642#comment-35408 Do you mean house price will go up simply because of inflation? I know there are "ten reasons" why house price will go down, but if inflation rate is very high, will house price go up? Of course, the real value will go down. Do you mean house price will go up simply because of inflation?
I know there are “ten reasons” why house price will go down, but if inflation rate is very high, will house price go up? Of course, the real value will go down.

]]> By: Sabin Figaro http://www.doctorhousingbubble.com/ts-of-inflation-forcing-the-inflation-genie-out-of-the-economic-bottle-germany-hyperinflation-of-the-1920s/#comment-35407 Sabin Figaro Fri, 03 Apr 2009 23:31:50 +0000 http://www.doctorhousingbubble.com/?p=1642#comment-35407 Oddly enough, I still haven't seen personal behavior change all that much, except I know more people that get food stamps than at any other time in my life. More people getting laid off and more people asking me to help them find work. My company has a wage and hiring freeze, so I can't help them. The 20-something kids at work for the most part still think everything is a joke, come in late, bs before they go to their tasks, take lots of breaks, long lunches, do the minimal quality and quantity...the only thing they excel at is loading up their tools and equipment to leave before five each day...Hope? that's a four-letter word. There will be no hope until people's mind-sets change. Government is so blatant about fabricating money rational people are stunned, but many think it's great. Seen the greatest bear-market rally in 60 years? Some other charismatic leaders brought their countries out of economic disaster, but not without paying a terrible price. Hiroshima let the world know there will never be another all-out war with survivors. Change? The only change is the bad solutions are just more extreme. Where do we go from here... Oddly enough, I still haven’t seen personal behavior change all that much, except I know more people that get food stamps than at any other time in my life. More people getting laid off and more people asking me to help them find work. My company has a wage and hiring freeze, so I can’t help them. The 20-something kids at work for the most part still think everything is a joke, come in late, bs before they go to their tasks, take lots of breaks, long lunches, do the minimal quality and quantity…the only thing they excel at is loading up their tools and equipment to leave before five each day…Hope? that’s a four-letter word. There will be no hope until people’s mind-sets change. Government is so blatant about fabricating money rational people are stunned, but many think it’s great. Seen the greatest bear-market rally in 60 years? Some other charismatic leaders brought their countries out of economic disaster, but not without paying a terrible price. Hiroshima let the world know there will never be another all-out war with survivors.

Change? The only change is the bad solutions are just more extreme. Where do we go from here…

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