Lessons From Weimar Germany On Surviving Hyperinflation
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- Опубліковано 21 сер 2023
- The Weimar Germany hyperinflation happened 100 years ago in 1923. I look at how the hyperinflation happened according to the book "When Money Dies". The hyperinflation after World War 1 in the Weimar Republic of Germany happened in just 5 years.
I talk about the types of jobs that did well during the inflation and which ones did poorly. I also look at the different assets like gold, silver, real estate, the stock market, factories, and farming. Some of these fared much better during Germany's hyperinflation than others.
There are lessons to be learned on how to prepare for runaway inflation in the US.
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An old story describing Germany's hyperinflation in 1923 was about a man who went into a store with his wheelbarrow full of the million and billion mark notes he would need to make purchases. He momentarily had to go into the nest aisle to fetch an item. He left his money filled wheelbarrow for less than a minute while going to get the item. When he returned, all the money was laying on the floor while the wheelbarrow was gone!!! In other words, the wheelbarrow had value, the paper money did not.
The same year The Frankfurt School was formed...interesting coincidence...
How could have gotten that bad in the few short years Weimar in power?
@@contemplating1015 by the same group that cause the first problem.
@@michaelchristman2329oy oy antisemitic 😅
@@MbisonBalrog Just look at what Barry/Biden has done for a reference. That's how.
I was in Mexico in 1986 during hyperinflation. There were 2 prices for goods, a morning price & an afternoon price, that's how fast prices go up. Hyperinflation creates scarcity, because entrepreneurs no longer know if they can earn a real profit on their wholesale purchase. So they stop buying, & shelves are empty. In Michoacan for a few weeks, there were no beans in stores anywhere. Merchants were going broke selling staples, & just stopped buying. People can starve during hyperinflation not because there is no food, but because there is no one who can sell it for a profit.
Oh wow I didn’t think of that!!
I remember that. That is true. I was talking to a Mexican lady from Tamaulipas last night. She was so stress with prices going up. Her kids are all grown and they are struggling. She is 60 years old and she remembers the 80s but she doesn’t have any knowledge of preparing for inflation. People are easy to control. They don’t remember in history and will vote for the same politicians
More or less the same thing in Argentina in the late 70s, although the inflation was "only" in the low 100s percent. The first thing you learn is to mentally base prices against a stable currency like the dollar to know if you're getting a good deal or not. And yes, Argentina has the most dollar paper currency outside the United States, at least today. The second is if you're used to only using the local depreciating currency, price discovery goes out the window, which makes most people terrible consumers. It's impossible to comparison shop store to store with prices always fluctuating, so you get used to just shopping nearby stores and paying whatever they are asking.
While hyperinflation may cause scarcity, one of the more secure stores of value for a business is retail goods, because you can change prices as needed. I remember many stores with imported items from Peru, like alpaca sweaters and onyx figurines, that could import cheap and use their inventory as a "savings account".
Very interesting comment. Thank you. This was when they devalued the Peso right after they officially came out and denied they would do it. That's why they say : "Don't believe a rumor until the government officially denies it".
@@FinanciallyAware I was on a surfing trip to Michoacan & Nayarit. It was only my 2nd trip to Mexico, but we had an older guy who had been going since 1976. He said we should exchange all our dollars for pesos in Nuevo Laredo because we will get a better rate than in the interior. So we did, I think we got 450 for 1. That was a huge mistake because 30 days later our money was worth less than half & we barely had enough for gas to drive home. Interesting times.
my grand-grandmother owned a small store. The workers to a large factory next by were paid daily, and they spent it right away, because the prices changed by the hour.
The wives would come at lunch to get the husband's pay and go spend it before prices went up. Crazy times.
I'm sure everyone spending their money right away only made inflation worse. I wonder by how much.
@@tomr6955 That essentially *is* the nature of hyperinflation. You don't get hyperinflation without that crazy velocity of money.
What tends to happen is that first the supply of money is increased rapidly, causing higher inflation, and it creates enough money to pay off most/all debts. At that point, nobody really has any reason to hold onto it (and a lot of reasons not to), so they start spending it the moment they get it. That's what takes an economy from "high inflation" (think 20%+ annually) to hyperinflation (~50+% monthly).
It's never *just* money printing, or at least it hasn't been historically. What has triggered hyper inflation has always been the mass abandonment of money as a store of value.
How can we abandon money when the government brings out CBDC. They can program it to lose or gain in value to suit their agendas
We will be there prisoners
Because your great-grandmother raised the prices every hour on goods that were already on the shelf. A perfect example of Price-Gouging.
This was excellent. I am so worried about this in the states. Paying for endless wars, horrible foreign policy, out of control government spending and hedge funds manipulating the government for their ends, it is just a matter of time.
I am watching huge financial crimes in the US stock market daily and nothing is done to stop it. The poor steal your gas but the rich steal your retirement
Mate you live in the centre of the empire that controls the world reserve currency. I live in NZ on the other side of the planet and I know every time a US dollar is printed a fraction of my savings has been robbed. We just had an election and our candidates talked about inflation like they actually have ANY control over it whatsoever. The American elite aren't just fucking you, they are dooming the entire world.
Can you name whos been doing this to you for over a century now?
@@rickpluto-ot7usthe synagogue of satan!
I'm scratching my head at how the poor even can steal your gas.
@@tarico4436 They were siphoning it from vehicles.
Great history lesson. But some countries love hyperinflation. The people in Argentina and Turkey can't get enough of it and keep electing politicians who will give it to them.
Yes. I have not been to either of those countries. I would like to go and see how they deal with such high inflation rates. Or maybe I'll just stay in the US and see first hand in a few years.
Nice one
Election fraud. As Stalin said it doesn’t matter what people vote, but who count the votes.
Bs. I can also say you love your Biden that you voted for. The devil who loves war
The USA is Argentina on heavy medication, the only economic salvation for USA has been printing money as the USD was the reserve currency.
But that is rapidly changing.
Oh wow! I'm from Singapore and I remember that name from my secondary school history textbooks 15 years ago. I think it was a chapter on the rise of authoritarian regimes and how WW1 Treaty of Versailles + hyperinflation in the Weimar Republic led to the rise of Hitler. Never thought I'd hear about it ever again, let alone be interested. History is so interesting when you don't have to study and memorize for a test.
Yes, and when you read it from different sources than what is taught in school.
Its what was called at the time the 'German economic miracle'.
As someone who doesn’t know much about Germany, the video is like having a stroll in Germany with a knowledgeable local guide. Love this format!
Economic issues, genocide and covid issues. You're now caught up. Oh let us not forget the VW emissions issue either!
Thank you. I am by no means a knowledgeable local guide. I only read the book.
My thought: few whites. Way more brown-skinned people.
Germany is dead.
Yes the Treaty of Versailles… every country had a seat at the table but Germany. When Germany asked for more time to pay, it was the French who said NO, enslaved the German miners to extract the minerals to send back to France.
The only thing Germany could do was fire up their printing presses to pay the French, Britain & USA
Yes, they don't tell you that stuff in high school history.
@@FinanciallyAware I mean, they taught us that in high school history in the 90s. It's usually used as a contrast to how treatment of the Allies, sans Russia, treated the losing powers after WW2.
The Rothschild's bankers use countries as puppets. We're all slaves.
@@FinanciallyAwarein the US they discuss this in detail often from my times at least
I’ve been stacking circular saw blades for $8 each. I think they will become $100 or $500 bills. When everyone is unemployed they will begin raising chickens and growing corn, potatoes, and beans. They’re gonna need to cut wood, for chicken coops, fences, bins, etc. They will be looking for side work and repairing their own houses. You’ll be able to sell saw blades at pawn shops, wherever, or use them as currency. They don’t go bad, I’ve got 1,000 so far, they fit in one box. You want the 7.25”, 24 teeth, the cheapest, they are for rough cutting (framing blades) of lumber and plywood. The more teeth, the finer the cut, the more they cost, and the sooner they wear out. People are not going to pay the extra cost for trim blades, they’re just gonna want something to cut wood, not build fine cabinets.
That is insane. Besides you can buy blades for less than $2 each
That's a very good strategy. People forget things like blades, drill bits and other cutters are consumables that wear out. One of the most important tools to collect will be hand files. A tool is useless if you can't put an edge back on it. If you're a machinist or a blacksmith, you'll be able to print your own money.
Yeah you should buy bulk wholesale prices from China if you aren't already. Commodities will always go up so you are doing right.
Don't be surprised when 'big brother' steps in, accuses you of 'excessive hoarding' and, ''for the sake of the common good'', decides to confiscate what they believe is too much (perhaps everything) and leaves you in the cold. This will happen when everything gets very chaotic, "emergencies" are declared and martial law sets in.
@@stanleykijek6983 what are you babbling about? The government has no idea what you have or how much you have nor do they care.
One way to survive is by leaving the country. I left Venezuela over 25 years ago and became an American citizen and now, I'm too old should I have to leave again… besides there is nowhere to go to. Stay strong, this will pass if we have learned our lesson and if we have not, well then we deserve it like we Venezuelans did. 😢
Massive immigration will doom the USA.
The entire globe is f*cked. It really is.
As long as sovereign nations exist that's a possibility. Unfortunately, national sovereignty is eroding.
Yes...where to run to?.
Be strong hecktor
@@skyw4278 nowhere, the only way is to fight socialism in the usa
Confiscation of gold has happened in the US, during the Great Depression under President FDR.
Yes. Today gold is not used for money so there is no real reason to confiscate it if they can just print digital dollars.
Not exactly true.
CB's around the world are hoarding gold BIGTIME.
So that must mean they still see it as money and its also back to being a tier 1 asset.
So when you know that and know that those creating the fiat are also running the rest of the show, then it's not hard to imagine them sending their goones to confiscate your PM's.
I already lost mine in a boating accident unfortunately..
But others might not be as lucky as I was.
@@luffebassen so you're saying there's a treasure chest full of your gold and silver on the seabed where you had your boating accident? 😂
Give us ol' pirates the map!
@@mq1995 Im saying you need to keep quiet right now and not bring any more attention to my OP 😏
@@FinanciallyAwarenotice that they stopped circulating silver and such after the untimely ‘departure’ of President Kennedy.
I've been preparing for this situation my whole life, unfortunately it has been a really poverty induced adventure, but has made me incredibly resilient. I currently manage a farm on a very expensive island outside of seattle, and have run my own farm where i focused on mushroom and salad production. I have set myself up to feed the rich, and essentially capitalize on their donations, in an enviornment that is very cost prohibited for competition to exist. Granted I have not made a lot of money in my 20s, but now that I am 36 and have started from the ground up many times, I am very streamlined, resourceful, and low overhead, as well as have all the infrastructure I need in a mobile, pack it flat design, also able to build structure and pay them off in the first harvest. Soil farming is not an easy life, and with land rent prices, it behooves anyone looking to add food security into their life, to make their systems non-permanent and mobile, unless they own land.
Where is this, Mercer Island? You need to amortize the cost of the land which includes mortgage, property tax, water, etc. into each head of lettuce. How are you going to compete with mechanized farms out in the middle of nowhere where costs are low, by growing in some of the most expensive soil around?
Greetings from a fellow farmer in California . I can’t wait to buy my own and live off the fat of the land!
@@joevarga5982 Clearly you missed the fact he also has a mushroom farm. Mushrooms can build an entire kingdom.
Have you ever pondered that your fear of hyperinflation-which hasn’t happened in a western nation in any of our lives-has had a disproportionate (and negative) impact on the planning of your life?
I’ve been hearing about the pending Weimar in the USA my entire adult life. I still do not ever expect it will happen before I die.
@@devin19222 🤣 Oh, my bad.
I left the IT industry in 2019 for good and my farm I had been building since about 2015 needed me full time. Covid mandates came and we left Germany and our beloved farm to move to south America to Uruguay. Once here, guess what we did? Build up another organic vegetable farm and invested our money in machines and equipment to produce high quality food with as little external input as possible. Bring on hyper Inflation, we are set up pretty well for it. Although I would prefer a more sensible future for the corrupt money system than that to avoid the suffering, I guess it will once again go that way. If not, great, we love farming 👍
Very insightful about the value of gold compared to food. I get sick and tired of the mantra in the media about the urgency of buying gold or silver. I’ll stick with having food and the means to produce it.
If you don't have a lot of extra money, buy extra food and supplies first.
Not so easy if you stay in the city. Better to have silver then to buy food
In its basic form, gold or silver are firstly a store of value, secondly a medium of exchange. I'm 50 and I have never owned this much gold and silver in my life. Unlike currencies, I can sell gold and silver or a Rolex in many countries. Try converting a Canadian dollar in say Bosnia. Good luck finding a bank that will exchange it. You cannot even convert Canadian dollars to Euros in most German banks. I convert gold and silver into cash, but the commission will varies widely.
Silver is great for smaller items. One of the reasons I have many bottles of quality scotch whiskey and good cigars....is trading power if I need it.
Buy Bitcoin.
@@1949coupe whiskey and cigars...will be traded for some crackers and bread. These are luxury items during normal times, but when everyone has trouble even filling their bellies, their trading value will go down substantially.
In the beginning of the video when discussing how there was no inflation until WWI started you forgot to add that the Federal Reserve was started in 1913 as well which was supported by elites in the US and across the pond. Let's not forget the three men who who died on the Titanic John Jacob Astor IV, Benjamin Guggenheim, and Isidor Straus, all three opposed the Federal Reserve Bank.
The money masters, the rise of the bankers is 3 hr history on the scum that have this world fucked! I didn’t know anything about these deaths as it wasn’t mentioned. They’ve had a former president of the USA way way back forget the name now as I’m European. Not having a financial background or college education, I now love learning from reading to You Tube.
I appreciate your comment and I’m going to see if I can find something on this 😊
I never looked into the Titanic thing. I think that is a stretch. There were probably many people against establishing the Fed. There must have been a much easier way to get rid of them instead of sinking a huge ship with thousands of people.
Not a stretch
And it wasn't even the Titanic that sunk. it was Titanic's sister ship that was in bad shape.(insurance scam).
@@joeybutafuco1845 oh man your talking on things now that most people would not even listen too. Not sure if you read the books by Robin Gardiner & Dan Van Der Vat who wrote about it.
@@dustinryan9671 yes I have read them. Have you ever read the creature from Jekyll island by G Edward Griffin? Agree to disagree my friend. Good video on hyperinflation. Peace ✌️
Inflation, bank collapse, severe drought in the agricultural belt, recession, food shortages, diesel fuel and heating oil shortages, baby formula shortages, available automobile shortages and prices, the price of living place.
Government policy has thrown the future under the bus for decades. The day of judgment is near. I predict an 80% drop in the stock market. Investors will abandon stocks in favor of real estate. There will be no money in banks... You must devise a strategy for survival.
I agree. I have pulled in more than $435k since 2020 through my advisor. It pays off more in the long run to just pick quality stocks and ride with those stocks.
@@hunter-bourke21 Mind if I ask you recommend this particular professional you use their service? i have quite a lot of marketing problems.
"Camille Alicia Garcia" is my portfolio-coach, I found her on Bloomberg where she was featured, I googled her name on the internet. Fortunately I came across her website and reached out. You can go verify yourself.
Camille. Has the appearance of being a great authority in her profession. I looked her up online and found her website, which I reviewed and went through to learn more about her credentials, academic background, and employment. She has a fiduciary duty to protect my best interests. I sent her an email outlining my objectives and also booked a session with her; thanks for sharing.
He speaks of foreigners spending only $1 for a wild night on the town in Berlin and having change left over.
My dad was born in 1919 and his first job was as an usher in a theater in 1935. He earned 15 cents an hour, which is $1.20 for an 8 hour day. You could support yourself, plus two others (e.g. wife and child) on $1.20 per day: food, clothing, rent, other basic expenses, for $1.20 per workday ($25 per month or $300 per year).
Yes, it is crazy to see how much the dollar has fallen since then.
If you don’t know where you’ve been, how can you know where your going. Thank you for sharing 👍
Yes. History doesn't repeat, but it rhymes.
Some economists have projected that both the U.S. and parts of Europe could slip into a recession for a portion of 2023. A global recession, defined as a contraction in annual global per capita income, is more rare because China and emerging markets often grow faster than more developed economies. Essentially the world economy is considered to be in recession if economic growth falls behind population growth.
My main concern now is how can we generate more revenue during quantitative times? I can't afford to see my savings crumble to dust.
Very true! I've been able to scale from $50K to $189k in this red season because my Financial Advisor figured out Defensive strategies which help portfolios be less vulnerable to market downturns
@@AbdoolLogodesign that's impressive!, I could really use the expertise of this advisors , my portfolio has been down bad....who’s the person guiding you.
Finding financial advisors like Julie Anne Hoover who can assist you shape your portfolio would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.
@@AbdoolLogodesign Insightful... I curiously looked up her name on the internet and I found her site, which I reviewed and went through to learn more about her credentials, academic background, and employment. She has a fiduciary duty to protect my best interests. I sent her an email outlining my objectives and also booked a session with her; thanks for sharing.
“The black obelisk” by Eric Maria Remarch is excellent in showing the weimar times. Very insightful!
Thanks
Thank you, I will get me copy.
You mean Erich Maria Remarque ??
Thanks, I will read it. Another good fiction about hyperinflation is The Mandibles by Lionel Shriver.
I see the number of visualizations and realize not many people are interested in history and that is why we are doomed to repeat it. Vast majority of people are so shallow so we all deserve what’s coming.
Thank you for your history class that is also a prophecy of what’s coming.
I'm surprised this video got as many views as it did. Most people don't want to think about these things it seems.
I watched this video twice & I will watch it again. Very important information here. Pay attention
I'm glad you liked it.
I had no idea France had done that. That gives context to why the Germans invaded France. Thanks.
The guy with the little mustache was pissed that Germany signed the WW1 armistice with France. The train car where this was signed in 1918 was in a museum by the time Germany invaded France. When France signed the armistice with Germany in 1940, he took the train car out of the museum and put it in the exact place where it was signed in WW1. So, there was a lot of animosity and revenge in mind. en.wikipedia.org/wiki/Compi%C3%A8gne_Wagon
It's been a multi-century grudge match between those two empires. Visit Strasbourg on the border, and you'll see both French and German influence in the architecture and culture, as that city has changed hands multiple times.
Hyperinflation happens quite often to different countries in the world and since the global economy looks like it was going to collapse, it's an important history to consider. Thank you for sharing
This just says that when things inevitably fall apart because of gov't, the last thing you want to do is think that the gov't is then going to come save you.
Very true.
Farmers were under a different economic model. They sold more directly to consumers back then. Now days food is grown on contracts.
They also had contracts with the government where they had to sell the first portion of their crop at some low government rate if I remember correctly.
during the Great Depression there were many more small family farmers that knew how to preserve to survive. If the dollar collapses many people in urban and suburban areas will be starving, and desperate if they haven't stockpiled some food. I read that farmers in Germany had their fields raided by mobs of hungry people. That will happen here if we keep going down the path we're on now. I believe it will happen sooner than anyone expects. Hope I'm dead wrong.
You're not wrong. The racial and political diversity will make the U.S. even more violent and unstable in the coming collapse
The book did mention that farmers in Germany had their fields raided by mobs of hungry people.
Unfortunately no-one can eat corn grown for ethanol or livestock. Farmers, you know, those guys with stockpiles of guns and ammunition, will be starving too and come into town to raid the food pantries first, then the supermarkets.
@@alexwilsonpottery3733Why not? Is it so different from food corn that it’s inedible?
@@Constantineopulos They are all agri-business mono-culture farmers. They won't survive either on their mono crop that takes mass inputs from outside sources...
Good info; my grandfather in law lived through that time and he said he could remember his mother grabbing his fathers check and litterally running down to the store to buy food as fast as possible...wall papering the kitchen in 100 marks because it was cheaper than wall paper...being excited to share a potatoe between four people...BTW America, Food is going to be important!!
Most ppl dont believe hunger can strike here.
Wow, good info. Yes, food is much more important than gold. But if it ever comes down to something like that, after two weeks people will be invading people's homes who have food. There is only so much you can prepare.
Reminds me 1993 in Ukraine with 2000% inflation rate.
Right after getting my monthly salary of about 1.5m coupons (pre-UAH) going to black market to exchange it for $8..$10.
Prices on goods were doubling every 3..4 days
Wow, that's crazy.
@@FinanciallyAware Fruits of such a "valuable" "democratic" values, sold to natives ;-) Of course no one cared about actual democracy at those times, neither they do now.Stealing? Oh, they did.
Slava Ukraini
@@alchemisttttt for what?!
@@humanyoda good question ... never thought of that 🤔
Life was filled with guns and war
And everyone got trampled on the floor
I wish we'd all been ready
Children died, the days grew cold
A piece of bread could buy a bag of gold
I wish we'd all been ready
-- Larry Norman
Ashes to ashes. Dust to dust. If it wasn`t for women, your ding dong would rust.
-- Larry Norman
Really should give a trigger warning before you quote that song. How many of us were traumatized by that propaganda.
I never heard that before.
@@FinanciallyAware it's from "A Thief in the Night" (1973), a movie evangelicals used to frighten children.
Actually if you keep it dry, it can't rust@@marrzie467
Wow, I never thought of rent control as a subsidy to corporations. I just knew that all rent controlled cities become unlivable. But yeah, its also a subsidy to the employers of renters.
There was a documentary about Walmart encouraging low wage employees to sign up for Medicaid so the government will pay for their healthcare. That is a subsidy to corporations. That is also why US car companies produce cars in Canada so they don't have to pay for the employee healthcare.
en.wikipedia.org/wiki/Wal-Mart:_The_High_Cost_of_Low_Price
Moral of the story, protect the Second Amendment at all cost.
Agreed
Agreed
Firearms and ammunition may be the new form of US currency one day
Amen
My grandfather and family left Germany for the UK because of the hyperinflation
Bad economic conditions cause a brain drain as people leave for better lives elsewhere.
Interesting video. I love how he placed himself in front of aesthetic backgrounds and also juxtaposes his narrative about economic collapse while normal modern life continues behind him. People thought everything was normal weeks before an economic crash
Thanks. I’m glad you liked it.
Very interesting indeed. On a parallel note, my father was 15 end of WW2 in Belgium. So his memories of occupation were very clear. During the occupation, possession of rifles, pistols, and even air rifles strictly forbidden. However there was an exception for farmers. Only because Belgian
farmers had to give up X amount of fresh produce to the German forces. They let them have a shotgun to deter theft of crops-livestock and also to drive off scavenging pest animals.
Farmers didn't get rich or fat. But they faired alot better than the starving masses.
anyone who has a job that serves the military industrial complex has job security.
The biggest hyperinflation though in America will be in the dating-to-marriage sphere, a hard crash from insane social media and general internet culture standards, thanks to “hyper-reality” distortions. Whether it being the 6/10 wanting a man making $500k a year and owning a 5 bedroom with 5 acres by 27, or some dude wanting a fit, friendly virgin while he’s still living at home and is overweight himself.
My only solace in what is coming is that the pain of reality always wins out on leveling expectations whether it be money or people. You can always bounce back from hard times over decades in economics, you can’t say the same from hard times in birth rates, which is much more of a critical hit to a culture.
Passport Bros
Very perceptive thoughts, I can see that taking place.
@@mikeholt1248 It is taking place. Right now.
In other words, it's gonna be fuuuuuuuuuun to watch!
I've got my big buttered bowl of popcorn ready.
Feminists will learn the hard way that things that take a hundred years to break take FIVE hundred years to fix. Read Isaiah Chapters 3 and 4.
This is when my grandfather from Hamburg left to go to New York. He was born in 1896 and my Oma was born in 1900. I lived with them in New York very often and they were a second set of parents. They died when I was an adult. Gold is still important.
Disagree. Gold is supposed to be a hedge against inflation so why isn't the price twice as much as it was 2 years ago? I believe so that they can sell as much of it as they can, then confiscate it back.
I’m glad ur folks got out but this is happening in America. How does one, who has been ripped off and used by the system escape this country?? There’s not another America out there with open borders for us to run to. This is the end of the line. Bottom of the trash bucket with a meat grinder beneath. There’s next to no authentic opportunities and as we see with these privileged unions going on strike ruining it for everyone else because they lived it up a little too much and have no savings even though there’s no excuse for them not to.
Gold market is totally manipulated. Bitcoin is the future decentralized gold 2.0 with limited supply
What does Warren Buffet say about bitcoin?
Earlier this year, Buffett dismissed bitcoin as a "gambling token" in an interview with CNBC, saying bitcoin "doesn't have any intrinsic value ... but that doesn't stop people from wanting to play the roulette wheel."@@kenhart8771
Gold's purpose is not to get rich quick! It was around $800-$900 an ounce in 2008 and 2009. Gold is consolidating around the $2000 level now. The purpose is to protect your purchasing power. @@JohnSmith-tz4on
The economist Milton Friedman was a WWII veteran of the US Army and was stationed in Germany shortly after the war came to an end.
Once Milton Friedman told the story of how, in those days, in Germany, American cigarettes became more of a valuable currency than the German Duetch Mark.
He told the story of driving a US Army Willy's Jeep in Germany and running low on gasoline. He stopped in a gas station and the owner refused to take American dollars or German Duetch Marks, but he accepted two cartons of Winston cigarettes in payment for gasoline.
That reminded me of prison. I have never been to prison but have heard how things like cigarettes and honey buns and other things can be extremely valuable in prison, they become currency.
Milton Friedman also spoke of Pacific Island nations who had never even heard of things like gold or silver, so things like gold and silver had no value to them. On some of these islands in the Pacific lime stone was currency. In those cultures on those islands one with a lot of limestone was wealthy.
When Europeans came to the Americas their gold and silver had no value to the indigenous peoples in many cases. Things like indigo and beads and pelts and meats and vegetables were the mediums of exchange. When Europeans came to trade with indigenous Americans things like guns and clothing and blankets were of far greater value to those indigenous people than gold or silver. They couldn't understand the white man's obsession with things like gold and silver.
When the dollar is worth nothing there will always be something that holds value.
Thanks for taking the time to comment. Value is in the eye of the beholder.
Dr. Paul Craig Roberts, formerly of the Treasury, made an interesting comment about the US economy while doing an interview on Sputnik Radio. He said manufacturing will not be returning to the US, because it requires a disciplined work force. Meaning getting up in the morning at the same time, driving to work, punching in, being respectful to the management and coworkers, etc. We still have that in aeronautics, anything related to defense, but the work culture is not anywhere near as prevalent as it used to be. We also have people used to moving on to another employer after just a short time. Merit hiring and merit promotion is becoming a thing of the past. All will create problems for the US economy. Ramping up production for extended wars abroad will also be difficult, although frankly I would consider that a positive.
It is a race to the bottom. They don't want encourage people to try to be as good and as successful as possible. Instead they are encouraging people to be "equal" at the bottom. Eventually this will start have serious consequences like when your airline pilot got their job because of reasons other than merit or competency.
Ypung men should be careful not to get married or start a family as thr next 15-25 minimum will be a Great Depression 50-100 times worse than thr onr in 1930s as it is global and a 100 times more debt and a total divided nation. Women will always want to have children regardless of being able to feed them so it is on men to hold discipline.
What's the issue with corporations hiring new blood? A bigger issue is older companies promoting from within based on time of service and not skills and qualifications and because they aren't a threat to leadership. That's the situation at the place where I work currently (5 months) as EHS Manager and it's a recipe for failure. Need fresh talent and eyes on processes and people to bring successes from other places they've been to help their new employer succeed. Many places have an old outdated and fixed mindset.
@heatherb.4302 I agree with that to a certain extent except there are times (my father ran into it) when the old boys are making top dollar and new blood will take a fraction of what the guys who have been there for 30 years will. So they clean it out, lay off the guys who weren't incompetent, who obviously was good at their job for 30 years. Just so they can hire young guys for less and she money. It makes the worker and employer relationship strained. I wouldn't want an employer to lay me off when they feel like I'm making too much money.
You consider war a positive ? You got no human morals
The motto of the "western world" is "Everyone should meet at the lowest common denominator"...............it is not about "best person gets the job" or about trying to keep a higher level of culture....Sad times
They want everyone to be equal at the bottom.
Think about inflation as your dollars deflating (because that is what it is) and you can pretty much figure out how to guard against inflation. Do not hold cash, hold assets. You want to be holding the stuff that is "inflating", and not the stuff that is "deflating" (your dollars).
In Turkey, the government literally destroyed the economy. People are getting poorer every month. Price of goods always increase while people can't get similar increase for wages. I'm afraid we have only seen the tip of the iceberg and next years will be worse.
I have saw stories that Turkish people use extra money to buy construction materials to add to their house to keep up with inflation. Is this common?
@@FinanciallyAware Construction materials? No, never heard of it. Most of the people are living in apartments, not in single houses like US. So, it's not possible. People also barely saves money. Middle class is destroyed.
People buy more than they need of mandatory products, like cleaning products, tea, toilet paper. Because everyone knows its gonna be much more expensive next month.
@@FinanciallyAware Buying home or lands and gold are common ways to keep up with inflation.
The catch with residential real estate was the "Hauszinssteuer" a tax aimed at houses to tax the windfall profit of mortgages beeing made worthless by inflation.
Thank you for the information. I knew some details of it but I was not aware of how it was applied to all mortgage owners.
No free lunch there. Mortgages also got reinstated later. So the notion of better being up to the neck in debt when hyperinflation hits is wrong.
That was the best fifteen minutes of my life that I have ever spent. I’m sixty seven. If you were listening that was better than a college education. I’m a mechanic. My advice is to move out of any city
Thank you Timothy!
Anyone else notice this is the only person in Germany with a phone? Or at least noticeably! Totally unlike the U.S. that 8 out of 10 are on it in any given place
I think I saw less people glued to their phones in Germany than I do in the US.
People are always on their phones in Europe. Just not so much when walking on the street.
Food and water and the means to produce it are key. Good food is also good medicine.
Anything you buy from a store will likely be low grade. Aleady much of our food has numerous fillers in them. Corn syrup for one is in practically everything.
Food is medicine and alcohol and sugar are poison. Limit the poison and you won't need to be hooked on pharma meds.
This really demonstrates the fact that money has no intrinsic value
It is a bait and switch. First you say it's backed 100% by gold or silver. Then you say it is convertible for gold at $35 an ounce only by foreign countries. Then you say it's just money because we say so.
Where have you been all this time?! You have explained everything perfectly; better than anyone else, to be honest. This should be required listing for all economics and history majors !
What? This is not college level material. I was taught this in Jr High and High School.
@@kidd3003 you look like an older man in your profile picture and that is not by any means a slam on you, but in today's world, the higher levels would teach this.
@@trackrunner11 Not offended, the mirror tells me everyday I am no spring chicken anymore.
And we didn't learn all of those details in Jr High, but we did get basic WWI history and talk of inflation, money printing and hyperinflation. But I'm also old enough to remember inflation in the United States in the late 70s. The younger generation here has never really seen it before now.
Hope you have a good day.
Thank you. I'm glad you liked it.
Excellent video packed with a wealth of information. I can attest that most of what you told in this video is true since I am currently living in Lebanon in the middle of a similar hyperinflation crisis. One idea that can be added is the reason why farmers did better than lawyers and doctors is the type of job. Is your job tied to a commodity? If yes (farmer or mechanic as you cited), you will fair better than jobs that aren't (doctors, lawyers, hairdressers etc pure service jobs untied to a commodity). It is somewhat embarrassing from an economic point of view since the uneducated blue collar jobs tied to a commodity become better paid than white collar jobs requiring extensive education. The point about factories exporting their products fairing better than those selling locally is exact.
I think possibly that a lot of blue collar jobs are not uneducated people. They have a trade that people need especially when hard times hit. Can the white collar workers weld, plumb, carpentry skills, mechanics etc? I’m sure some can possibly do some physical work but from what I’ve seen most are helpless so yes they should be paid more. Much more
Thank you for the interesting comment on what is going on in Lebanon. What do people do with extra money? Do the buy gold, silver, Euros, or extra food and building materials?
Well spoken and info packed. I subscribed and I hope your channel grows.
Ps not only are the storefronts revealing, including the two McDonald's ...but the masonry paving on sidewalks in streets and apparently pedestrian outdoor malls was phenomenal. Unfortunately the underlying message that no one knows how to survive it for sure is disheartening.
Thank you. I think the message that no one knows how to survive is better to know now, than to find out later when you loaded up on the thing you thought would do well in hyperinflation. Many things work in theory, but if the govt changes the rules or makes you a criminal for holding PMs or foreign currency, then you are stuck.
That kind of brick and cobblestone paving is throughout Europe. You can still find some old paving from the original Roman roads. Brick and cobblestone survives freezing and thawing pretty well, what might tear up concrete and asphalt.
The biggest denomination I had, and still do, from former Yugoslavia, was a bill of 500 000 000 000 dinars. I think that was the max it got to.
Nice. That would be interesting to go into a store and try to buy a bottle of water with it.
Weimar problems sometimes lead to Weimar solutions
The story about the $1 group was actually Ernest Hemingway and his friends. They were living it up!!
Yes, he wrote about it in a Canadian newspaper.
In the book. It also describes wealthy jews as "gold currency people." They acquired pianos, real estate, coats, etc.....for small pieces of gold/silver. Basically took advantage of the situation by understanding economics.
This is partly what led to them getting blamed later on when adolph became popular
Yeah but also many such other things. Like being the communist revolutionaries in soviet union and in germany, and pioneers of transgender surgies and ideologies, as well as being the financiers behind germany's crippling debt. The long nose tribe are nobody's friend
I almost never leave comments but, fantastic job and I loved the closing summary. I’m subscribing. Thanks
I'm glad you liked it.
so thats why europe is anti farmer. farmer are producing real value so no matter what happens they will benefit.
They want to control the food supply and ration it out based on your social credit score.
Yeah, the reversal of Gresham's law is called Thiers' law, which states that good money will drive out bad money. Thiers' law comes into play whenever a currency loses so much value that it is no longer accepted as a means of payment by merchants, as was the case in Germany, and as has been the case in places like Zimbabwe & Venezuela. Anyone living today, amidst the world's fiat currencies, should be slowly saving in Silver and small increment Gold.
Thank you for that info. I was not aware of Thiers' Law.
Indeed
Bitcoin will be the best way for anyone to store value to trade for the future. You can't take gold/silver with you and people can take it from you by force.
@@QDogg This is false. The more I know about Bitcoin, the more clear that becomes. Bitcoin is increasingly manipulated by outside forces, relies constantly on the greater fool, has an unknown source of creation (suggesting that it is plant), and is deflationary in its nature. For all of these reasons and many others, it can never serve as actual money. You are welcome to your views, but I would encourage you to do more research, specifically regarding the differences (not the similiarities) between BItcoin and Gold. I'm happy to stick with something that has a 5,000+ year track record in every economic environment known to man, and you can stick with a technological abstraction with a 12+ year history and that relies on computer chip manufacture, consistent electricity supply, and a functioning internet at the start of a 3rd World conflict. Best of luck!
@@QDogg people like things they can see, touch and most importantly TRUST ! If shtf no doubt the electricity and internet will be patchy at best. Bartering and silver n gold will be the way to trade. crypto should do ok but i definitely wouldn't put all my eggs in that basket
Thank you for enhancing my knowledge of the Weimar Germany period in history. I'll keep an eye out for such things as I watch my own country of Canada gradually descend relative to other countries around the world.
I have the book. Need to go back and listen to it again
I think many will suffer here in the US from to much debt, many do not have enough land to grow food and very few middle class have precious metals it will be a rude awakening for many
I agree. Not many people have any kind of backup plans if things get bad.
If things get bad it will be bad for everyone. Even the prepared ones.
Siver is about $23 an ounce surely many americans could buy an ounce a week.
@carlmay8314 Majority of them have too much faith in the dollar.
How much land would you need to support yourself? Year round in the average location in this country? There are far too many people alive now to make a comparable comparison. And if I got this bad, it would be basically end times as we know it. you wouldn't have enough ammunition to save what you have.
I thought this was going in a completely different direction.
Glad I was wrong.
Well Done Sir. Well Done.💪💪
Thanks. I’m glad you liked it.
Work for your market value. Inflation only affects the money in your bank account. Not the money you earn. When inflation goes up, demand more money for the work you are currently doing. find a new employer especially if you have an irreplaceable marketable skill. I’m a CNC machinist. If I leave my company they suffer not me.
That only works if you live paycheck to paycheck. If you want to save for when you can no longer work, you have to invest in ways to beat or keep up with inflation.
My grandmother told me that in the depression they had to save all year long to pay property taxes😊
IMO:
1. Currency = In God we trust. Very clear statement.
2. Inflation = Continue working/producing to serve the beasts
3. Personal wealth = Love, peace and health. Helping the unfortunate human that are poorly needed
4. Basic needs = Clean - air, water, food. A farmable land
God blesses America and the rest of world.
That video was a great surprise, and informative. It's great that you've done this video while casually walking in Frankfurt.
😊👍
I'm glad it was a good surprise. Stay tuned, I will have a few more like this.
aka Rothschild Town
No , it is : Mainhattan !
Main is the river there !
Surrounded by Turks and Syrians.
Germany is history.
Once America falls...the whole world shall follow
Maybe it is the plan. Look at our border.
Amazing book !
When history, geo-politics, and economics directly affect the common man in 1923.
Shop keepers spent good parts of the work day counting billions in customer marks for purchases and then change given back to patrons.
TIPs and Inflation Index Bonds are massive hedgers in hyperinflation
I don't follow TIPS but generally bonds get wiped out in a hyperinflation.
@FinanciallyAware
The key is...."Inflation indexed" bonds. As inflation fluctuates, the bond yield adjusts. Example, with 1000× hyper-inflation, the indexed inflation bond yield will parallel that increase.
@@good2goskeeyes, but the government always finds a way. They’ll change how inflation index is officially calculated.
You got that a little wrong.
Manual labor, paid by the day, did well as they could raise their labor rate easily.
Same with farmers with their produced goods.
Anyone in an educated salaried job made out very poorly.
Probably. I think I assumed that the labor and factory workers got paid every week or month. Getting paid every day would make more sense that they were able to keep up with inflation better than a salaried white collar job.
Does anyone know when the Build back better starts? ANYONE!
Dropped that saying ages ago 😊
That's propaganda from the WEF (World Economic Forum) which is thankfully mostly defunct now. Part of the evil Cabal.
😂. I think the lesson is, when the globalists said that, they meant for them (thanks to our money), not us!
They didn't say where they will build back better. They meant Ukraine.
It was a misprint. It was supposed to be "Build Back Backwards".
Thank you for mentioning the book ‘ When Money. Dies ‘ by Adam. Fergusson, I bought it after you said about it and it is really interesting and I like you thoroughly recommend it to anyone. Very accessible to anyone.
Remember that Americans were not allowed to own Gold Coins from 1934 until 1975 due to the Gold Reserve Act. The purpose was to increase the gold reserves, which increased the money supply, lowering real interest rates which in turn increased investment in durable goods. This was deemed necessary during the Great Depression to push demand and supply of goods up again to reopen factories and create jobs.
I see it coming here in America. Stocking canned food, dry food, water, medicine, ammo, toilet paper, soap, etc. If nothing else, I’ve realized how much I’m saving by using food and supplies I bought just a year ago. Get it while you can; now that there is this conflict between Ukraine with Russia & Israel with Palestine, all it takes is a shortage of fertilizer, a shortage of oil, a shortage of buying power, and the prices of food and goods goes sky high.
I don't think it will get to that level anytime soon, but It is better to have too much food put away than too little.
@@FinanciallyAware Can you elaborate?
@@FinanciallyAware It already has. Ranchers are now being offered future cattle sales at about 3x wholesale, as the supply chain for beef is drying up. I filled the freezer with beef last year when the drought hit the southern United States and ranchers were liquidating their herds because they couldn't afford to feed them.
I keep trying to tell people: Things are not getting more expensive, it is simply your money that is getting worth less.
It's a good time to start a garden and learn how to prepare soil. A Canadian who posted on this site made 6 figure income with less than an acre of land he borrowed that was not being used in the city.
The biggest problem in the West is that no one knows practical skills like gardening. It's actually very simple, start with composting (saving veg food scraps) and preparing your soil. In fact you should start today! One person can support a small community with some effort.
Good content. I especially liked how you filmed it in Frankfurt. It was interesting how the area around the stock market looked so familiar compared to the newer area. The city has changed a good bit since I was last there in the 80's :)
Thanks. I’m glad you liked it. I would have loved to see Germany in the 80s.
Excellent Presentation ! A real eye opener!
Always Learn .....thank You. safe travels.
Thank you. I'm glad you liked it.
Good job I’ve been saying the same things to my neighbors. They always look at me like I’m crazy, but I’ve told Them it’s falling on deaf ears no oh well I guess the wake up when it’s here. God bless you and your.
Thank you. This is not meant to scare you into hiding in a bunker. It is good to be prepared within reason.
During the German hyperinflation, it was common for upper class women to open up their legs to farmers in order to be able to feed their families.
😮
So in summary, a fantastic time to be a farmer XD
Yea. Unfortunately when you're starving you'll do anything to get food.
An empty stomach has little morality.@@AJ-ox8xy
They are already doing it in LA where they decriminalized solicitation for "opening up their legs". NYC is going that way too.
Excellent, useful content. Subscribed, upvoted.
Awesome, thank you!
My grandparents left Germany separately in 1923 to live in the US. Now I understand why they fled their homeland 😢
My German Grandfather on my Mothers side also left Germany after WW1 , he could see that bad things were coming and packed up just the essentials and immigrated to the U.S.A. and started two factories making woven wooden apple baskets and kept both factories running through the Great Depression !
Wow, they left right as things were really bad.
Amazing video (and quite brave of you to narrate it publicly in the streets of Germany!) - definitely sheds light on other aspects of Germany that followed...in the 1930's and 1940's. Obviously, there was going to be a very bad reaction to all of this, however misplaced it might be.
Regarding content just buy gold/silver and commodities which are easy to store. Simple as that.
There were smart ppl who invested all their money into height sought up commodities. If they took credit before the even multiplied their ability
If just 100% per month or week
Money devalued as follows:
Month: 2^12 = 1024x
Week: 2^4 x 2^12 = 16376x
If you are frugal you even can make profits. Let's say the inflation runs 12 months until currency reform. But you have commodities for 48 months. You can buy real estate and other things who lost value for nothing.
If inflation is 100% a week, you will be worried about if you can catch a squirrel to eat, not what apartment building you can buy.
@@FinanciallyAware I said commodities this includes food storable food. My mother tongue is german I thought the term commodities includes food or not?
I would stock up on food. Canned food.
The US is heading in this direction as we speak
I hope not. But prepare a bit anyway.
@@FinanciallyAwareit's "baked into the cake " every fiat currency throughout time ends the same way.
I don't think so. The US still has really good demographics and is really versitile in it's land mass. If the US fails. The world fails. China has the worst demographics, and terrible land mass. They won't be replacing the US. We might go through some pains for sure, but I don't think the US is failing any time soon. Just my opinion. Let's all hope I'm right.
@@freshtendrills5969 To scale, Argentina has a comparable demographics, land mass, and access to natural resources. Yet their government has been a $hit show for decades and impoverished the people beyond measure. It has happened to them, and it can easily happen to us. I lived there for three years and saw it first hand.
@@JScottHamilton disagree. Argentina does not have close to comparable resources as the US. Argentina is the size of what? Florida? The US has the greatest domestic waterway, the Mississippi River. It has huge amounts of farmland. It has huge oil reserves. It also has a history of political stability. And the word economy wouldn't collapse if Argentina does. It's not comparable at all.
Very educational. Straight forward. Spoken not too far over my head with finance mumbo jumbo. Perfect. Yank you.
Thank you. I am glad to hear that. I hate people explaining stuff and making it sound more complicated just to sound smart. Economists are the worst at this.
Well done thanks. Looking forward to reading the book.
I'm glad you liked it. Definitely read the book.
This is a great video. Thank you. Weimar Germany has a lot to teach us about what can happen when the SHTF.
Glad you enjoyed it!
This was a fascinating video. Thank you.
I'm glad you liked it.
This is exceptionally informative and sparks a lot of thought. Thanks for sharing!
I'm glad you liked it.
Great video. To the point and not hyperbolic. Worth rewatching.
I'm glad it was helpful.
Thanks for presenting this book contents and sharing your knowledge and points of view. I am from Brazil and I can state that South America passes through these situations from time to time (look at Argentina for example). This is real, and the Second World War was a consequence of these situations. The world is getting complicated again in what regards to economics and politics, we must stay alert and be prepared.
Wealthy Latin Americans keep as much wealth as possible outside their country of origin to keep it from being confiscated by governments. In Buenos Aires years ago, the preferred destination for this "capital flight" was Miami.
Around 2007-2008 many Brazilians bought apartments in Miami when the Real was stronger. They were also traveling to the US with empty suitcases and coming back filled with goods and electronics. I think I remember reading that on average they were the highest spending tourists at the time buying about $5000 worth of goods on their trip.
Cloth is always more essential than democracy. It is a crying shame so many people put so much faith into something so clearly dysfunctional.
It seems many governments are working very hard to make everyone so poor that they will have to choose between clothes and democracy.
Frankfort. My birth-place. I haven't been back since 1963. I am jealous. Great video. Thank you.
I'm glad it was helpful.
Very well done and informative video!....Viewer comments were insightful and thought provoking........im a new subscriber and a senior citizen in the States. Im still interested in learning, choosing the best direction i can, and helping others along the way
Keep marching on, soldier
Thanks. I’m glad you liked it.
Its "100th anniversary". The "year" is redundant because the "anni" part of anniversary literally means "year". I apologise profusely for my pedantry, but this is as bad as "PIN number" and everyone does it.
Speaking of 100, I have to go take out $100 from the ATM machine.
Great video. Clear and you understand the topic. It’s a great book as well.
Glad it was helpful!
Great job, see you in the next one.
Thank you. Stay tuned. I have a few more places to visit.
very good video man, you gave my subscription
Thank you.
If law and order breaks down, all bets are off. Your property could be appropriated by the mob. No one wins.
Yes, it started getting to the point where city people would head to the farms to steal produce.