Chart Of The Day: 803 Years Of Global Inflation

You know how you always, think, you know something. You learn bits and pieces of a subject, until gradually, you're pretty sure, that you have a solidly formed picture, in your own mind, on what you've studied?

Well this is a test, to see exactly how well, you envisioned what you studied.

It's not a hard test, but I will tell you, I failed on a subject that I was positive, that I had down solid.

If a picture is worth a thousand words, well then this one is worth a million
(inflation, you know) lol "Who could have known"?

Spot the point in this 803 year timeline of world inflation, when the Fed was created.

Germany's hyperinflation is your future yet to come America

http://www.pbs.org/wgbh/commandingheights/shared/minitext/ess_germanhyperinflation.html

America this is where the Federal Reserve is leading you, and like the Germans, most will be completely unaware until the moment it hits.
Starvation will be the common denominator of the day.
If you continue to stay silent about what the FED is now doing, you will have the unique pleasure of walking back into time and experiencing the daily trials that the Germans were forced to suffer through.
The Great Depression was a Sunday stroll compared to this event and trust me when I say it's not something you want to experience.

Before World War I Germany was a prosperous country, with a gold-backed currency, expanding industry, and world leadership in optics, chemicals, and machinery. The German Mark, the British shilling, the French franc, and the Italian lira all had about equal value, and all were exchanged four or five to the dollar. That was in 1914. In 1923, at the most fevered moment of the German hyperinflation, the exchange rate between the dollar and the Mark was one trillion Marks to one dollar, and a wheelbarrow full of money would not even buy a newspaper. Most Germans were taken by surprise by the financial tornado.

"My father was a lawyer," says Walter Levy, an internationally known German-born oil consultant in New York, "and he had taken out an insurance policy in 1903, and every month he had made the payments faithfully. It was a 20-year policy, and when it came due, he cashed it in and bought a single loaf of bread." The Berlin publisher Leopold Ullstein wrote that an American visitor tipped their cook one dollar. The family convened, and it was decided that a trust fund should be set up in a Berlin bank with the cook as beneficiary, the bank to administer and invest the dollar.

In retrospect, you can trace the steps to hyperinflation, but some of the reasons remain cloudy. Germany abandoned the gold backing of its currency in 1914. The war was expected to be short, so it was financed by government borrowing, not by savings and taxation. In Germany prices doubled between 1914 and 1919.

After four disastrous years Germany had lost the war. Under the Treaty of Versailles it was forced to make a reparations payment in gold-backed Marks, and it was due to lose part of the production of t

ShadowStats.com founder John Williams explains the risk of hyperinflation. Worst-case scenario?

http://www.fairfieldweekly.com/article.cfm?aid=16014


Do you believe everything the government tells you? Economist and statistician John Williams sure doesn't. Williams, who has consulted for individuals and Fortune 500 companies, now uncovers the truth behind the U.S. government's economic numbers on his Web site at ShadowStats.com. Williams says, over the last several decades, the feds have been infusing their data with optimistic biases to make the economy seem far rosier than it really is. His site reruns the numbers using the original methodology. What he found was not good.



Maymin: So we are technically bankrupt?

Williams: Yes, and when countries are in that state, what they usually do is rev up the printing presses and print the money they need to meet their obligations. And that creates inflation, hyperinflation, and makes the currency