Inflation and fiat currency
Weimar Hyperinflation
The hyperinflation that occurred in 1923 was horrific. The trigger for it dated back to WWI, which you will recall, was a war that Germany initiated:
“Due to Germany’s obligation to pay large reparations after World War I, a hyperinflation was induced reaching its peak in November 1923, when the American dollar was worth 4,210,500,000,000 German marks.”1
A Government decision to freeze industrial production would hurt the French, but not as much as it would hurt Germany. The Weimar government destroyed their own supply chain and encouraged saboteurs to do it. They also decided to pay people to stay at home instead of work. Freshly printed money allowed the useless public service to be flush with funds.
This endless money printing was possible under a fiat money system. Almost immediately, there was more money chasing less things. Since the government enabled saboteurs and a general strike by coal workers, coal production collapsed. Very quickly the price of coal skyrocketed. This in turn affected the cost of production for food, steel and other essential goods. Soon the cost of everything began to rise. Hyperinflation had set in. Money would be better used as toilet paper, fuel for a fire or something to keep the kids occupied:
Hyperinflation wiped out the middle class. Millions of salary workers had their wages fall below the cost of living. Bank savings were wiped out. Eventually, people struggled to buy food. Workers that once had salaries that could buy a house and raise a family, were now willing to work for a day just to buy food to survive. It was akin to slave labor.
Only those who owned parts of the supply chain would survive the hyperinflation. While many worker-folk were losing everything, corporations and industrialists became incredibly wealthy.
Some would even descend to the lowest levels of work in order to survive.
Life in Berlin was like a cabaret show. When democracy arrived, free expression was taken to its extreme. Removal from a regime that regarded free will and self-expression as mortal enemies, appeared to create an equal energy in the opposite direction.
Was this the new normal, or was it allowed to happen as part of a plan to return Germany back to its totalitarian past?
Accompanying this new free and creative party-atmosphere was a dark underbelly of crime, drug taking and prostitution. The people had lost everything to war, plague and a famine caused by hyperinflation. Political violence and revolutions were commonplace. People were losing faith and were turning to vice and crime as a means of survival.
Cocaine became as acceptable as coffee. Prostitution was rife, as many desperately tried to make ends meet. This atmosphere attracted people from all over the world to travel to Berlin and realize their wildest fantasies.
Unfortunately, an even darker, more-sinister industry emerged through this chaos and poverty. Children had also become sexual commodities. The reasons why this happened are inexplicable to a sound mind, but an industry of total depravity and evil had been introduced to Berlin culture. It seems people would do anything for money.
For all the good things Berlin offered, this activity crosses the ultimate red-line. The heinous abuse of children transcends all moral boundaries. Everyone who was complicit was in the cross-hairs of the overwhelming majority of everyday Germans wanting their country back. A nihilistic moral decay had set into the nation’s capital.
Who was supplying children to this market? Who were these celebrities and international businessmen ordering children like pizza? Why were pharmacists involved? These were all questions of the day, and they remain remarkably familiar, today.
Other than to condemn these acts as the worst evil imaginable, I can find no justification for such crimes. Whoever these people were, they were sick and needed to be exterminated.
The rage that was building within average Germans would one day be harnessed by yet another creation of Ludendorff, Adolph Hitler.
Summary:
We have said previously that Germany was being thrown to the wolves, following the successful infiltration and transition of power to Washington. This transition would commence in 1917. Let’s review what actually happened:
Germany suffered a humiliating military defeat.
The imposition of the Versailles Treaty would send the nation broke.
The Reichswehr created a shadow intelligence operation, carried out domestically.
The Government knew about the shadow government, but allowed and enabled it.
Political and racial violence was fomented in the streets.
Class warfare was running rampant.
The new Republic was run by the far left, resulting in gross economic mismanagement.
The government paid workers to stay at home, rather than go to work.
This led to a government made energy crisis, and eventually hyperinflation.
Cartels had taken control of supply chains. (to be unpacked in Part V)
Fascists and Communists were rioting and overthrowing local government.
Political violence at the hand of the Black Reichswehr was being ignored by the courts.
Hyperinflation meant that wages fell below the cost of living.
A hyper-progressive culture emerged, led by the LGBT community.
Sexual debauchery had exploded.
Pharmacists were trafficking children for sex to the rich and famous.
The hyperinflation that occurred in 1923 was horrific. The trigger for it dated back to WWI, which you will recall, was a war that Germany initiated:
“Due to Germany’s obligation to pay large reparations after World War I, a hyperinflation was induced reaching its peak in November 1923, when the American dollar was worth 4,210,500,000,000 German marks.”1
A Government decision to freeze industrial production would hurt the French, but not as much as it would hurt Germany. The Weimar government destroyed their own supply chain and encouraged saboteurs to do it. They also decided to pay people to stay at home instead of work. Freshly printed money allowed the useless public service to be flush with funds.
This endless money printing was possible under a fiat money system. Almost immediately, there was more money chasing less things. Since the government enabled saboteurs and a general strike by coal workers, coal production collapsed. Very quickly the price of coal skyrocketed. This in turn affected the cost of production for food, steel and other essential goods. Soon the cost of everything began to rise. Hyperinflation had set in. Money would be better used as toilet paper, fuel for a fire or something to keep the kids occupied:
Hyperinflation wiped out the middle class. Millions of salary workers had their wages fall below the cost of living. Bank savings were wiped out. Eventually, people struggled to buy food. Workers that once had salaries that could buy a house and raise a family, were now willing to work for a day just to buy food to survive. It was akin to slave labor.
Only those who owned parts of the supply chain would survive the hyperinflation. While many worker-folk were losing everything, corporations and industrialists became incredibly wealthy.
Some would even descend to the lowest levels of work in order to survive.
Life in Berlin was like a cabaret show. When democracy arrived, free expression was taken to its extreme. Removal from a regime that regarded free will and self-expression as mortal enemies, appeared to create an equal energy in the opposite direction.
Was this the new normal, or was it allowed to happen as part of a plan to return Germany back to its totalitarian past?
Accompanying this new free and creative party-atmosphere was a dark underbelly of crime, drug taking and prostitution. The people had lost everything to war, plague and a famine caused by hyperinflation. Political violence and revolutions were commonplace. People were losing faith and were turning to vice and crime as a means of survival.
Cocaine became as acceptable as coffee. Prostitution was rife, as many desperately tried to make ends meet. This atmosphere attracted people from all over the world to travel to Berlin and realize their wildest fantasies.
Unfortunately, an even darker, more-sinister industry emerged through this chaos and poverty. Children had also become sexual commodities. The reasons why this happened are inexplicable to a sound mind, but an industry of total depravity and evil had been introduced to Berlin culture. It seems people would do anything for money.
For all the good things Berlin offered, this activity crosses the ultimate red-line. The heinous abuse of children transcends all moral boundaries. Everyone who was complicit was in the cross-hairs of the overwhelming majority of everyday Germans wanting their country back. A nihilistic moral decay had set into the nation’s capital.
Who was supplying children to this market? Who were these celebrities and international businessmen ordering children like pizza? Why were pharmacists involved? These were all questions of the day, and they remain remarkably familiar, today.
Other than to condemn these acts as the worst evil imaginable, I can find no justification for such crimes. Whoever these people were, they were sick and needed to be exterminated.
The rage that was building within average Germans would one day be harnessed by yet another creation of Ludendorff, Adolph Hitler.
Summary:
We have said previously that Germany was being thrown to the wolves, following the successful infiltration and transition of power to Washington. This transition would commence in 1917. Let’s review what actually happened:
Germany suffered a humiliating military defeat.
The imposition of the Versailles Treaty would send the nation broke.
The Reichswehr created a shadow intelligence operation, carried out domestically.
The Government knew about the shadow government, but allowed and enabled it.
Political and racial violence was fomented in the streets.
Class warfare was running rampant.
The new Republic was run by the far left, resulting in gross economic mismanagement.
The government paid workers to stay at home, rather than go to work.
This led to a government made energy crisis, and eventually hyperinflation.
Cartels had taken control of supply chains. (to be unpacked in Part V)
Fascists and Communists were rioting and overthrowing local government.
Political violence at the hand of the Black Reichswehr was being ignored by the courts.
Hyperinflation meant that wages fell below the cost of living.
A hyper-progressive culture emerged, led by the LGBT community.
Sexual debauchery had exploded.
Pharmacists were trafficking children for sex to the rich and famous.
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