We should all understand that inflation is coming after the economic destruction at the hands of the ruling class. Now with the help of the central bank, the United States could very well end up looking eerily similar to the Weimar Republic soon.
One week ago, the Bank of America hinted at the unthinkable: the tsunami of monetary and fiscal stimulus, coupled with the upcoming surge in monetary velocity as the world’s economy emerges from lockdowns, would lead to unprecedented economic overheating, according to ZeroHedge. But this was actually rather precedented considering history. BofA’s CIO Michael Hartnett reflected back on the post-WWI Germany and he said it was the “most epic, extreme analog of surging velocity and inflation following the end of war psychology, pent-up savings, lost confidence in currency & authorities” and specifically the Reichsbank’s monetization of debt, and extrapolated that this is similar to what is going on now.
There is, of course, another name for that period: Weimar Germany, and because we all know what happened in response and the result was massive genocide after Adolf Hitler came on the scene.
Of course, others have been less shy – in 1974, Jens Parsson wrote a fascinating, in-depth historical analysis of the hyperinflationary collapse of Weimar Germany under the original money printer, Rudy von Havenstein, “Dying of Money: Lessons of the Great German and American Inflations” one which we periodically remind readers is absolutely critical reading in preparation for what comes next. –ZeroHedge
Who is responsible for hyperinflation? It’s always the ruling class (and the central banks, but I repeat myself). ZeroHedge called it in a tweet from 2010:
Is Ben Bernanke The Second Coming Of Rudy von Havenstein, The Central Banker Responsible For Germany's Hyperinflation? http://bit.ly/bKVeU3
— zerohedge (@zerohedge) February 26, 2010
If anyone has gone to the grocery store lately and not noticed that their bill is higher, it’s curious what delusion they are painting for themselves. Below is an easily digestible repost of Burry’s lengthy Saturday tweetstorm, which shows just how similar our world is to that prevalent in the years just before Weimar Germany saw the most explosive hyperinflation in history.
https://twitter.com/michaeljburry/status/1363226460979228673?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1363226460979228673%7Ctwgr%5E%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fwww.zerohedge.com%2Fmarkets%2Fmichael-burry-warns-weimar-hyperinflation-coming
We are there now. The only question is when do we enter the exponential currency collapse phase. When we do, a universal basic income tied to your social credit score and your ability to be ruled and controlled will be instituted by the ruling class to fix the problems literally caused by the ruling class. Wake up, people. The time to figure this out was 6 months ago.
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Andrea.Iravani. will be here to write a book in the comments in 1… 2….3…
Maybe this AI should start their own website.
So much text which goes on for literally thousands and thousands of words, yet never makes a point. A point is the most effective and interesting when made in fewest words possible. Just trying to help.
No Sheet Sherlock!
I spent many of my formative years with a relative, who witnessed WW2 Germany in person, who emigrated to America and called it a welfare state 60yrs ago, and who was forever being told, relax, relax, this is not WW2.
As well as having no realistic chances of owning the basic means of subsistence, in freehold, no one has expected this country to pay off it’s debt, in recent generations.
It would probably be wisest to repudiate, first, audit second.
Exactly DS – Debt is only reconciled a few ways, probably 3:
1) It can be as you say repudiated in whole or in part – for starters, it would instantly destroy the credit rating of the US gov’t, interest rates would skyrocket, bond market would definitely collapse, entitlement programs would immediately cease to exist, debt holders like pension plans would be totally wiped out, and borrowing money would be impossible at any interest rate, and create mighty pissed off major bond buyers like China and Japan.
2) We can try to inflate our way out – but the more determined we are to rid debt by inflation the faster money loses it value, it would quickly result in runaway hyper inflation, think Weimar Republic, this too would destroy bond markets for years (this covid “pandemic” has collectively cost the US trillions of dollars with nothing to show for it except massive new new debt, it will be inflated away, stand by for double-digit inflation).
3) Cut almost entirely all gov’t spending at every level of gov’t, go into a hardcore national austerity for several years (about 20 years) until it’s paid – it will destroy our standard of living and quality of life, there would be total confiscation of all privately held wealth, the national infrastructure which is already bad would be devastated, likely strict long-term martial law in place, after debt was finally paid it would take decades for the majority of citizens to escape poverty.
I personally believe it will be business as usual until a monetary and budgetary crisis occurs, then SHTF. The “elites” already know it’s coming, the people will be the last to know.
Regardless of which route taken, all three would cause similar results – a long-term collapse of the economy, massive social upheaval, a messy decentralization of power and probable secession of several states, and likely widespread loss of utilities (water, phone, sewage, cable, trash collection, natural gas, elec. power, etc.). When the fed. gov’t finally admits bankruptcy many states, counties, and cities will follow.
Probably the best way to handle it would be a slow burn, controlled repudiation, if that’s even possible. But the fact of the matter is we are already in a debt death spiral where the only options are severe pain. The truth is we do not possess the means or will to pay off the debt, even a little part of it.
Swiss banking countries attract lots of wealth and have functional infrastructure, that puts ours to shame, using only nominal taxation and small govt.
But, we appear to be using post-Weimar methods.
In 1929 the price of one ounce of Gold was $20.67. So in todays market (2021) one ounce of Gold costs in excess of $1,750.00.
This provides an obvious comparison that suggests the VALUE of the dollar is less, you can buy less with a single dollar today compared to 1929. Many factors cause the problem but printing currency is the worst culprit. Weimar hyperinflation does NOT end well.
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