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Old 02-11-2009, 10:31 PM
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Jonlion Jonlion is offline
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Join Date: Jan 2009
Location: London
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Quote:
Originally Posted by NateR
Actually, they were playing Ben10, which I'm not a huge fan of, so I had no problem changing it.

Back to the hyperinflation, when Germany started printing money out of control, prices skyrocketed to unbelievable levels almost overnight.

This is a 50 Mark note, which could buy 25 loaves of bread in 1920 (equivalent to our dollar, bread is about $2 a loaf right now).


This is a 5,000,000,000 Mark note (that's 5 billion). In November 1923, you would have needed 40 of these to buy a single loaf of bread (equivalent to $90 billion for one loaf of bread).


Within hours, you would have needed 80 of these to buy half a loaf of bread. That's how quickly it can all fall apart.

There were many factors that played into the collapse of the German economy, but the basic premise is sound: If you print too much worthless money, eventually ALL of your money becomes worthless.
Great times if you have borrowed a lot!

Our government talks about the same thing and whenever anyone mentions the line "print money" i start to lose all faith in the economy, i mean its the road to ruin surely!

I mean, so far i have lost about $2000 in shares i had and lost about $1500 in a bonus i usually enjoy, so i am for sure feeling the pinch of the credit crunch but the media, the politicians all conspire to make it so gloomy, that im actually not that much worse off than i was last year or the year before but all their scare mongering makes me feel poorer when i am around the same.

Thats what irks me, is it really all that bad?
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