Everytime I see those pictures I find myself asking about how a government can make their money worth less than firewood. It's impressive.
I read up on it; in the case of the Weimar republic (the pictures) they were actually forced by other countries due to their loss in the First World War.
They basically treated Germany like we do third world countries today, starving, exploiting and ridiculing them. As today the English/US media covered this up.
There were several
revolutions before Hitler came about - the world was basically begging for things to go wrong and Hitler just per chance was one of many that succeeded.
No wonder they never told us THAT in history class. Doesn't excuse the Nazis of course, but damn there's some blame to share there!
Anyway on topic it is said that depressions can be deepened by a deflationary currency as well, could this be true?
I don't believe it too much myself - we have a depression now and the currencies are inflating quite a lot. Are the examples given simply depressions caused by something natural and unrelated to what ever currency is used?
Lets say we have BTC world economy in the future and there is a huge depression, will this make BTC fall out of favor?
A lot of "economy" is basically exploiting of the Earths resources, given that can depressions actually be a good thing now and then?
Lets say there is a market wide bad idea - like today with bailouts of idiot banks - for the market to correct itself all of that has to collapse. This means a depression sooner or later which will last until the NEW elite/businessmen catch up.
Will printing money really help in such a situation? That is what we are doing today, but it will only lead to a greater collapse or hyperinflation.
Now IF the government printed money and massively invested it correctly in the NEW paradigm THAT might actually work. However as you have a market wide bad conception of reality prior to a depression it is unlikely those in power would know what the next paradigm IS.
If my theory is correct it is more optimal to have a short smallish depression with BTC than to exacerbate the problem with "monetary policy" (of any kind) getting in the way. This way you at least avoid the constant risk of hyperinflation.
Any eventual BTC government should instead provide housing, food and basic necessities for its citizens (those who paid voluntary tax). This way people are kept alive while the market re-orients itself and it is a cheap policy compared to many others.