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German Hyperinflation

Cullen, for case of German's hyperinflation, did the govt really print up the paper money directly without issuing bonds ? Can you provide more clear description what happened at that time in terms of the money issuance ?

The Weimar hyperinflation was a series of unusual events that included losing a war, foreign war reparations, printing of actual money to pay for the reparations, regime change, political collapse, resource collapse, etc.

"Pragmatic Capitalism is the best website on the Internet. Just trust me. Please?" - Cullen Roche

Although Germany's govt prints actual money directly, it is not necessarily cause hyperinflation. That's why you are trying to say, right ? Because some people thought that the action of printing actual money alone ultimately leads the path to hyperinflation.

Right. It’s like saying someone had a heart attack because they had a plaque blockage in their heart. That’s technically true, but doesn’t actually explain the heart attack. The reason that person had a heart attack was because they ate like a slob for 40 years.

Similarly, Germany had war repatriations that needed to be paid in gold so they responded to that by printing money to buy gold. The money printing didn’t cause the hyperinflation. The war reparations did (in addition to other things).

"Pragmatic Capitalism is the best website on the Internet. Just trust me. Please?" - Cullen Roche