US Money Reserve Presents Examples of Hyperinflation: Weimar Republic Germany

Inflation can be like a fire, if left unattended. At first, it might only lead to you purchasing generics, but then it might lead to you cutting back on the essentials. That is why the Federal Reserve (Fed) has a key inflation target of 2%.

 

Inflation can destroy consumers, businesses and nations. The US Money Reserve presents an example of hyperinflation: Weimar Republic Germany. Is America next?

 

German Hyperinflation

 

The Federal Reserve was created back in 1913 to prevent inflation from getting out of control. Inflation can sop individuals, businesses and governments. Consumers might no longer be able to afford basic goods.

 

Businesses have a tough time properly budgeting for their purchases with rising inflation. Sometimes, during hyperinflation, they are forced to change their merchandise prices every few hours. This creates chaos.

 

When prices rise quickly, the citizens lose faith in the government. And, this is what happened in Germany after World War I.

 

Worthless Paper Money

 

As with any lost war, the losing side is usually penalized. When Germany lost World War I, it gave up territory and made reparations payments to Great Britain and France. The installed German government was called the Weimar Republic.

 

The economy was in turmoil. It was difficult enough losing the war, but the world was also about to enter the Great Depression. Germany had a paper fiat currency and eventually it suffered from hyperinflation.

 

The well-established danger of paper fiat currencies is based on government debt. When a debt is denominated in a certain figure, let us say 100,000 – then all that governments need to do is print more paper currency. They have more paper currency and can more easily pay off their debt of 100,000.

 

The absolute number of 100,000 debt has not changed, but the printing of money has reduced the value of the 100,000. It is like a magician’s trick. That is why some think that paper fiat currency is less reliable than gold.

 

As more fiat currency was printed, German stores raised their prices. Eventually, Germans were bringing wheelbarrows of paper fiat currency to pay for common goods. This was a classic case of hyperinflation.

 

Gold Store of Wealth

 

The US Money Reserve has an answer for inflated fiat currency. You don’t need a wheelbarrow of dollars, you can find a reasonable amount and peruse the redone website. This makes it easy for you to find the gold and silver coins, you need.

 

Gold and silver cannot be printed by governments. US Money Reserve President Philip Diehl understands this. He has worked at the US Mint so he has very good connections.

 

Inflation increases can hurt everyday life. If it is left unchecked, it can destroy nations, like Germany before World War II. How many Germans wished they owned gold or silver coins, instead of worthless paper fiat currency?

 

Plenty of Americans have already traded their paper currency for gold and silver coins. These coins are beautiful. Gold and silver coins are tools to help you combat hyperinflation.

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