Discussion in 'Economics' started by zdreg, Mar 4, 2011.
With one ounce of gold you could buy a 5 floor hotel building in Germany at the peak of the hyperinflation bubble.
Imagine going there again...
It would truly change society once more.
Although many of the rich probably have bought gold recently as a hedge positioning them for any future scenario to unfold.
Kind of sucks in a way doesnt it.
how is that possible if gold was selling at $35/ounce
Im sure Bubble ben bernanke reviewed these pictures and data when he was studying the great depression.
Bubble ben bernanke loves to print worthless monopoly money!!!
maybe send Benboy this present
Not even close. We are in a Stagflation period which could last for 20 to 30 years. PERIOD.
HYPERINFLATION is not happening and it's a scare tactic to get fools to rush into Gold.....and buy farms and live in the woods.
The Germans had a very special purpose for initiating their hyperinflation and I'm surprised that no one has mentioned it so far. Instead this thread runs on. Possibly as some sort of a scare tactic.
If you think the Weimar tried to inflate out of WWI reparations, think again. The reparations were denominated in goldmarks. The papermarks were what inflated.
Now you tell me why they did it.
These stories of huge factories/hotels/department stores selling for a single ounce of gold are fairy tales at best. To my knowledge, there is no data of any such these fantastic transactions actually taking place.
The inflation adjusted purchasing power of gold in the Weimar republic increased about threefold from 1920 to the peak in late 1924. You could buy three times as many real assets with your gold in early 1925 as a couple years prior.
Gold did a great job preserving wealth in times of turmoil as did foreign currency (Sterling or Dollars) but it didn't make holders of a couple ounces of gold filthy rich overnight. That's pure fantasy.
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