When money dies

[Elwar]

In 1914 there was a minor increase in the wholesale price index. That index, with a base of one in 1913, had increased to 2.45 by the end of 1918. Beginning in 1919, the speed of the inflation increased, advancing to 12. 6 in January 1920; 14.4 in January 1921 and 36. 7 in January 1922. By the second half of 1922, that index stood at 101 in July; it was 74,787 in July 1923 and 750 billion on 15 November 1923.

A good read:
http://mises.org/daily/6945/When-Money-Dies-Germany-and-Paper-Money-After-1910

[segvec]

In 1914 there was a minor increase in the wholesale price index. That index, with a base of one in 1913, had increased to 2.45 by the end of 1918. Beginning in 1919, the speed of the inflation increased, advancing to 12. 6 in January 1920; 14.4 in January 1921 and 36. 7 in January 1922. By the second half of 1922, that index stood at 101 in July; it was 74,787 in July 1923 and 750 billion on 15 November 1923.

A good read:
http://mises.org/daily/6945/When-Money-Dies-Germany-and-Paper-Money-After-1910

Thanks for sharing.
I have been loving your posts lately.

Impressive.

[evok3d]

"In a few years time, most of the world will be as sick of managed paper currencies as it was twelve years ago. The main trouble will be that popular ignorance and lethargy, coupled with selfish special interests, forces politics into the management of economics and the management of economics into politics. Politically speaking, the world is yet far from being ready for managed paper currency standards."

Great article, thank you for sharing

[BlindMayorBitcorn]

I thought this was going to be about Beanz LOL

[Q7]

And that is why we have bitcoin coming into the picture now

[efiin]

Thanks for sharing I'll add that to my reading list and will weigh in on anything which I think needs to be discussed later.

[cbeast]

Thanks. This might be the cure for the insomnia caused by the price crash. 

[Jamie_Boulder]

Good article however my lack of history economics knowledge made some things harder to understand

[bitnanigans]

Still don't get why people are losing sleep over the price crash. We should all be used to this by now.

[bornil267645]

Simple, when money dies, Bitcoin prevails. It's as simple as that. Bitcoin was invented for that very moment.

[worle1bm]

No no no no. First, Mises is not a good reference. There is a reason the vast majority of econ professionals look at the Austrian school like an embarrassing little brother.

Second, Bitcoin holds no inherent value, none. There is no transactional benefit in using Bitcoin versus a currency. An internet fad =/= superior system.

[Elwar]

No no no no. First, Mises is not a good reference. There is a reason the vast majority of econ professionals look at the Austrian school like an embarrassing little brother.

Second, Bitcoin holds no inherent value, none. There is no transactional benefit in using Bitcoin versus a currency. An internet fad =/= superior system.

Austrian school that is annoying because it is right all the time and the big brother with the power hates being reminded about it all the time.

And thank you for making your view on Bitcoin clear instead of just trolling. My ignore list welcomes you. If I wanted to discuss the dollar I would go to bankrate.com.

[worle1bm]

No no no no. First, Mises is not a good reference. There is a reason the vast majority of econ professionals look at the Austrian school like an embarrassing little brother.

Second, Bitcoin holds no inherent value, none. There is no transactional benefit in using Bitcoin versus a currency. An internet fad =/= superior system.

Austrian school that is annoying because it is right all the time and the big brother with the power hates being reminded about it all the time.

And thank you for making your view on Bitcoin clear instead of just trolling. My ignore list welcomes you. If I wanted to discuss the dollar I would go to bankrate.com.

This is a big part of why Bitcoin and Mises aren't taken seriously. Folks manage to, at the same time, be supremely sanctimonious and plug their ears of any different lines of thinking.

[manselr]

No no no no. First, Mises is not a good reference. There is a reason the vast majority of econ professionals look at the Austrian school like an embarrassing little brother.

Second, Bitcoin holds no inherent value, none. There is no transactional benefit in using Bitcoin versus a currency. An internet fad =/= superior system.

Austrian school that is annoying because it is right all the time and the big brother with the power hates being reminded about it all the time.

And thank you for making your view on Bitcoin clear instead of just trolling. My ignore list welcomes you. If I wanted to discuss the dollar I would go to bankrate.com.

This is a big part of why Bitcoin and Mises aren't taken seriously. Folks manage to, at the same time, be supremely sanctimonious and plug their ears of any different lines of thinking.

Yes, but i have the fear the dollar supremacy can reinvent itself and keep growing forever.

[Robert Paulson]

No no no no. First, Mises is not a good reference. There is a reason the vast majority of econ professionals look at the Austrian school like an embarrassing little brother.

Second, Bitcoin holds no inherent value, none. There is no transactional benefit in using Bitcoin versus a currency. An internet fad =/= superior system.

Austrian school that is annoying because it is right all the time and the big brother with the power hates being reminded about it all the time.

And thank you for making your view on Bitcoin clear instead of just trolling. My ignore list welcomes you. If I wanted to discuss the dollar I would go to bankrate.com.

This is a big part of why Bitcoin and Mises aren't taken seriously. Folks manage to, at the same time, be supremely sanctimonious and plug their ears of any different lines of thinking.

your right, we should take the monetarist/Keynesian scam that destroyed world markets twice (soon to be three) in the last 14 years seriously.

why do we even play games with money printing and interest rates, working so hard to prop prices up.
lets just skip right to a north korean command economy model and dictate what the price of everything should be and be done with it.

[worle1bm]

your right, we should take the monetarist/Keynesian scam that destroyed world markets twice (soon to be three) in the last 14 years seriously.

why do we even play games with money printing and interest rates, working so hard to prop prices up.
lets just skip right to a north korean command economy model and dictate what the price of everything should be and be done with it.

Well, it makes sense to take the dominant model seriously, since it is at work every day. I don't think you can lay all these evils at the feet of an economic model, however, that's simply lazy thinking.

[TheMasterKey]

In 1914 there was a minor increase in the wholesale price index. That index, with a base of one in 1913, had increased to 2.45 by the end of 1918. Beginning in 1919, the speed of the inflation increased, advancing to 12. 6 in January 1920; 14.4 in January 1921 and 36. 7 in January 1922. By the second half of 1922, that index stood at 101 in July; it was 74,787 in July 1923 and 750 billion on 15 November 1923.

A good read:
http://mises.org/daily/6945/When-Money-Dies-Germany-and-Paper-Money-After-1910

Were those the days were you had to carry money in the barrels just to buy a loaf of bread? The hyperinflation in the 20s Germany? It might happen anytime soon these days. Paper is just that - paper.

[Keyara]

Kind of misleading.

Fiat might die, but money will not. Society always find a way to exchange good using a medium of exchange (aka money).

[pattu1]

http://www.bbc.co.uk/schools/gcsebitesize/history/mwh/germany/crisis1923rev_print.shtml

People collected their wages in suitcases. One person, who left their suitcase unattended, found that a thief had stolen the suitcase but not the money.

[Pente]

After reading that book, be sure to read "Fiat Money Inflation in France" by Andrew Dickson White:

Read online:
https://archive.org/stream/fiatmoneyinflati00andrguat#page/2/mode/2up

or download here:
http://www.gutenberg.org/ebooks/6949?msg=welcome_stranger