To: stan_hughes who wrote (1062 ) 9/20/2007 11:34:01 AM From: Real Man Read Replies (2) | Respond to of 71446 Weimar Ben? Roots and causes of hyperinflationen.wikipedia.org "The main cause of hyperinflation is a massive imbalance between the supply and demand of a certain currency or type of money, usually of a certain currency or type of money, usually due to a complete loss of confidence in the currency similar to a bank run. First, the enactment of legal tender laws prevent discounting the value of paper money vis-a vis gold, silver or a hard currency , by forcing acceptance of a paper money which lacks intrinsic value. If the entity responsible for printing a currency then promotes excessive money printing, with other factors contributing a reinforcing effect, hyperinflation usually occurs. Often the body responsible for printing the currency cannot physically print paper currency faster than the rate at which it is devaluing, thus neutralising their attempts to stimulate the economy."Message 23525127 Too many coinsidences in my book. "Metallic coins were rapid casualties of hyperinflation, as the scrap value of metal enormously exceeded the face value. Massive amounts of coinage were melted down, usually illicitly, and exported for hard currency." Hmm... What's the value of copper in the penny? "Governments will often try to disguise the true rate of inflation through a variety of techniques. These can include the following: 1) Outright lying as to official statistics such as money supply, inflation or reserves." Is Fort Knox gold on loan to bullion banks? BLS statistics is a joke "2) Suppression of publication of money supply statistics, or inflation indices." Where is M3? "3) Price and wage controls." Here that talk about gas prices? "4) Forced savings schemes, designed to suck up excess liquidity. These savings schemes may be described as pensions schemes, emergency funds, war funds, or similar." Privatization of SS? "5) Adjusting the components of the Consumer Price Index, to remove those items whose prices are rising the fastest. " What's core and hedonics?