Read a great new post about the US economy and monetary policy here, this is an excerpt:
“…We are reaching a point, however, where the economic issues facing our nation are becoming a grave moral concern. What happens when we run out of money? When foreign countries dump our currency? When the dollar completely tanks? When unemployment soars?
Ever heard of the Weimar Republic? That period of post World War I Germany where inflation had spiralled so far out of control that the German Mark, which had an exchange rate of 4.2 to the American Dollar in 1914 had reached an unfathomable low of 2 TRILLION marks to the dollar by 1923? People were bringing cash to the store by the wheelbarrow full to buy things like a loaf of bread. Nearly 1,800 government printing presses were running around the clock just to produce enough cash. (For more on this aspect of Weimar Germany, go here.)
What had precipitated this massive decline? A huge war debt, financed only partially by taxes. The bulk was paid for by loans, the sale of treasury bills, and an increased monetary supply.
We need to get this country’s spending under control. We are making ourselves vulnerable in so many ways. Economic crisis leads to real suffering – extreme poverty, starvation, loss of life…”
Filed under: Tennessee | Tagged: debasement of US currency, depression, economic collapse, Economic Contraction, hyperinflation, interest rates, monetary policy, recession, ron paul, stagflation, stop printing money, war debt, Weimar Republic | 1 Comment »