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Biotech / Medical : 2012 Biotech Charity Contest
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To: Chris08 who wrote (294)6/26/2012 8:30:25 PM
From: Steve Lokness  Read Replies (1) of 513
 
<<<<< Reparations were to be paid in German GOLD marks>>>>>

Chris, pegging a currency to gold has the EXACT opposite effect as what happened in the Weimar hyperinflation. As I thought it was that the government went off having their money tied to the price of gold that allowed inflation to run out of control. So, inflation came first and then other countries required that reparations had to be paid in a currency that had some value left (a gold based currency for example). That's obvious if you think it through; what country wants to be paid in a worthless currency.

My point remains valid. If a government prints too much money, they debase their money making it worth less. It has happened many times besides the German example I offered. Here is a list, the German example looks like the fourth worst;

en.wikipedia.org
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