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Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers -- Ignore unavailable to you. Want to Upgrade?

To: loantech who wrote (54163)	12/13/2007 12:41:42 AM
From: pogohere	Read Replies (1) \| Respond to of 78420

"Here’s how Ludwig von Mises described the process nearly one-hundred years ago, making clear the inevitable destruction of fiat currency from inflation." In Weimar Germany, the paper currency, the fiat currency, was issued by a privately controlled central bank. The excess currency issued was useless to pay the war reparations forced on Germany by the Allies following WW1, as those reparations had to be paid back in the Allies' currencies. The excess currency issued was used by speculators to attack the German currency, the mark. They did so in a way that made history. The Hitler government responded under Hjalmar Schacht's direction by issuing its own government created fiat currency. Schacht didn't care for that at the time, as he favored private control of the currency, but he pursued this path anyway because it enabled Germany to dig itself out of the economic hole it was in. It also alienated the Anglo-French-American private bankers, as it cut them out of the game. The German economy responded very well to the medicine and recovered faster than the English and French economies at that time. Schacht's antipathy to the program he directed led to his departure from the financial government post he held. That saved him from being charged with war crimes after WW2. see: Hjalmar Schacht, "The Magic of Money" webofdebt.com There's nothing inevitable about the destruction of fiat currency by inflation, especially if it is not issued by private bankers. Message 24120111 Message 24100960