Hard to believe....but true....in pre-Hitler Germany.
In 1920 a loaf of bread cost 15 cents in the U.S. However, look what happened in Germany, an educated, industrialized country!
"In 1920, a loaf of bread soared to $1.20, and then in 1921 it hit $1.35. By the middle of 1922 it was $3.50. At the start of 1923 it rocketed to $700 a loaf. Five months later a loaf went for $1200. By September it was $2 million. A month later it was $670 million (wide spread rioting broke out). The next month it hit $3 billion. By mid month it was $100 billion. Then it all collapsed.
In 1913, the total currency of Germany was a grand total of 6 billion marks. In November of 1923 that loaf of bread we just talked about cost 428 billion marks."
When you print unlimited amounts of your nation's currency to artificially pay off the nation's debts....you end up eventually...with massive "price" inflation. The U.S. has been traveling down this road for some time! It's only a matter of time....as in months... until we reap the fruits of our governments borrowing and spending habits.
So my question is this. Are we going to have to endure another Hitler in our lifetimes?
In the interim, hang onto your silver and gold. Maybe you'll be able to hide it even from Hitler... if you are lucky. LOL
Im on SS and a large pension so inflation could be a killer for me so owning physical silver along with SLV and CDE is a double edged sword to me. Guess the silver and my food stash is a last resort type thing.
Story about the guy in post ww1Germany who took a wheelbarrow of money to the bakery to buy a loaf of bread and while he was looking the other way someone stole the wheelbarrow and dumped the money.
Hope this posts-http://books.google.com/books?id=VaryYai0QkEC&pg=PA9&lpg=PA9&dq=germany+depression+picture+worthless+money&source=bl&ots=n942TtQv1U&sig=m7n6PTseZS5MChF5Noe_4TirJXM&hl=en&sa=X&ei=zOvtTvufO_LKiALs5Y35Aw&ved=0CDgQ6AEwAg#v=onepage&q&f=false
Well, Syria is certainly making it easy by having chem-bio weapons that may need a few U.S. airstrikes and a couple thousand MArines to "stabilize" them.
As for inflation, I don't see it happening soon. Trillions pumped into the system here and abroad are just sitting there...no velocity. Mathematically, velocity is getting ever slower.
Until that "stuff" is deployed by a populace willing and able to spend/borrow it we are deflating.
The promise/hope of future inflation, though, is strong. So says the PM complex today.
Velocity of money surfaces during inflationary periods. But sudden loss of confidence in one's currency can trigger higher velocity. If either U.S. bonds or their little worker bees (the U.S. dollar) suddenly lose confidence worldwide....just watch the velocity of money increase in the flight to safer assets....which will include more than silver and gold. But silver and gold will enjoy a nice ride!
Isn't that the event what we are all waiting for...unfortunately?
Finding scapegoats to divert the populace was another tactic.
Let's see which third world nation needs a preemptive strike this time, by whoever is in power.
That President may not be Hitler, but is sure taking a leaf from his notebook.