I am currently reading this book, “Dying of Money” written by Jens O. Parsson. It’s an old book, anyone might find a .PDF copy somewhere through a simple Google search.
It’s about how the Weimar Republic lost control of its monetary system, and the description of events, from before, that caused hyperinflation.
READ IT WITH ME.
https://www.amazon.com/Dying-Money-Jens-Parsson/dp/1457502666
The cover motif is a piece of old German money. It is a Reichsbanknote issued on August 22, 1923 for one hundred million marks. Nine years earlier, that many marks would have been about 5 percent of all the German marks in the world, worth 23 million American dollars. On the day it was issued, it was worth about twenty dollars. Three months later, it was worth only a few thousandths of an American cent. The process by which this occurs is known as inflation.
A few years before, in 1920 and 1921, Germany had enjoyed a remarkable prosperity envied by the rest of the world. Prices were steady, business was humming, everyone was working, the stock market was skyrocketing. The Germans were swimming in easy money. Within the year, they were drowning in it. Until it was all over, no one seemed to notice any connection between the earlier false boom and the later inflationary bust.
I have not read that book in particular but I am aware of that particular crisis, what happened was not just the government printing too much money, what happened was that during the first world war the German government printed a lot of money in order to sustain the war effort and most people kept their money just in case they needed it so inflation did not increased it, but once the war is over and people decided to make use of their money they realized it bought a lot less, people panicked and bought everything they could finally reflecting the impact of the monetary polices of the German government on the economy, and this created a vicious cycle in which governments kept printing money and people kept spending it as fast as they could.
Not according to the book. The war-effort was just “partly responsible”, and there were other reasons as well. The people responsible were playing with the monetary system, printed for business credit, government expenditure, and more, until they lost control of it.
In the U.S., they were printing to expand the economy, and the money-supply. That was BEFORE COVID. They will be printing trillions more for their “war-effort” vs. the pandemic.
Today, we have something called MMT, or Modern Monetary Theory. OR simply, MMT is the belief that big government can pay for ANYTHING by printing money, and taxing its citizens very high to reduce the circulation of money, and avoid inflation. But how sustainable can MMT to be? I believe smart people, like Elon Musk, are definitely hedging.
Here’s the free link of the book. EVERYONE in Bitcoin SHOULD read it, and get some knowledge from it,
https://recision.files.wordpress.com/2010/12/jens-parsson-dying-of-money-24.pdf
