Aren't Depressed Enough? Go Read This!

Found at Sister Toldjah:

http://sistertoldjah.com/archives/2009/04/03/1932-or-1923/

1932 or 1923?


If the Telegraph’s Martin Hutchinson is right, we should be worried that instead of 1932,
it’s 1923:

…look at the Weimar government. Suffering from the trauma of defeat in the First World War and the burden of reparations, it was too weak to raise taxes. It ran large budget deficits instead. Interest rates were kept far below the rate of inflation, while money supply expanded rapidly. About half of government expenditure was funded by newly printed money.

The great economist John Maynard Keynes provided an acid comment in 1920. “The inflationism of the currency systems of Europe has proceeded to extraordinary lengths. Governments, unable, or too timid or too short-sighted to secure from loans or taxes the resources they required, have printed notes for the balance.”

In Germany, the result was hyperinflation. By November 1923, the mark was worth one trillionth of its 1914 value. Pay packets were collected in wheelbarrows. Foreign depositors in German banks were wiped out.

Think about how President Obama and the progressive Democrats are spending like drunken sailors on payday: How are they going to pay for it? There are three ways: borrow the money (”Hello, Beijing? I’d like two trillion in take-out money, to go, please. Just charge it.”), tax the people until we bleed, or print a lot of new money. That last is the 1923 or “Weimar” option. Think it won’t happen?