New Micro-Documentary Released! The Fall of the Fourth Reich: Empire of Debt Hyperinflation in the U.S.? Future Money Trends Newsletter Makes the Case in New Documentary
LOS ANGELES, March 22, 2013 /PRNewswire-iReach/ -- FutureMoneyTrends.com is pleased to release our new documentary that compares the United States to previous empires, specifically the Weimar Republic.
Use this link to watch the micro-documentary today.
The number of similarities between Weimar Germany and American today are eerie.
In 1911 a National Health Insurance Scheme was initiated by a reforming Liberal government; Sound familiar? A German welfare association was founded in 1920. War victims' benefits were added then, and in 1922 the Youth Welfare Act was passed. Regular unemployment relief assistance was consolidated in 1923.
Production had collapsed in Germany after the war and because of the strike of workers in the Rhine as France occupied. Similarly United States production has fallen tremendously in recent decades.
Fast forward 100 years in time.
The U.S. Congressional Budget Office has estimated to be spending $1.9 Trillion by 2017 in paying for the Iraq War alone. This is double the amount Germany spent during World War I. The Vietnam war was only half the cost in comparison…but right in the middle of that war, in 1971 was when the U.S. was taken off the Gold standard as we couldn't afford to pay for the war without creating new money.
We all know what happened by 1980; dollars rushed into the hard assets of Gold & Silver, ballooning their prices as the public panicked to retain and gain wealth.
Back to today, U.S. Official national debt has nearly tripled in the last 12 years. The money to fund our deficits has been borrowed or printed out of thin air.
During World War I, the Germany Money supply quadrupled; it then took just five years before hyperinflation set in. The U.S. Money Supply, M1 & M2, have about doubled over the course of the Afghanistan and Iraq wars. It increased from 5 to $10 Trillion roughly for the M2 money supply.
The budget deficit for the last year of World War one for Germany was 34% of their budget. Interestingly the budget deficit for the U.S. in 2012 was 35% of the total budget.
Both Weimar Germany and our country today have low interest rates. Credit was easy to attain; increasing the inflation boosted by speculators and business men. Germany kept the same bank interest rate of 5% from the start of the war through 1922; only raising it after the hyperinflation was there to stay.
There was a threeyear buildup period of inflation before it became severe enough to become hyperinflation.
From December 1918 to 1921 Bread had increased from half a mark to 4 marks. We should say only increased. Because in just one year; by December 1922 it was 163 marks for one loaf of bread.
By March 1923 this was 463 Marks and hyperinflation kicked in, tripling the price in three months; then in just two months it shot up nearly 50 times to 69,000 marks for a loaf of bread in August 1923. By November the same year that bread was 201 BILLION marks.
Could we be in the start of the inflation preceding hyperfinlation? Corn as one example tripled in price over the last 6 years. Many other similar factors have played out in the U.S. that we saw in Germany.
The German central bank; the Reichsbank was founded in 1876. The U.S. Federal Reserve was founded in 1913.
The German currency was decoupled from Gold in 1914, The US Dollar: 1971. In 1919 Germany's debt was 133% of GDP; a number the USA will reach in not too long if still on the current path; that's not even including unfunded liabilities. The purchase of government bonds by the central bank at yields lower than the rate of inflation can be the spark for people to lose faith in the Dollar; causing them to dump the currency creating the inflection point at which more and more people dump their dollars and thus it's perceived value finally reaches its actual value of no more than the paper it's printed on.
So many countries have experienced hyperinflation to call it a common and inevitable occurrence to any fiat currency. Hyperinflation has occurred in: Angola, Argentina, Austria, Belarus, Bolivia, Bosnia, Brazil, Bulgaria, China, Georgia, Germany, Greece, Hungary twice, Israel, Krajina, Mexico, Nicaragua, Peru, The Philippines, Poland twice, Romania, Taiwan, Ukraine, United States, Yugoslavia, Zaire, and Zimbabwe…to name just some.
You heard us say the United States in that list. In fact the U.S. has had hyperinflation twice. You may have heard of the expression used during the American Revoultion: "not worth a Continental." Again during the Civil War the Confederate notes became worthless.
The U.S. Dollar Index has fell from 100 to 80 over the last 10 years. The only thing keeping the Dollar afloat is our military bravado that keeps countries inclined to use the Dollar as a World Reserve Currency. If that changes, and with increasing deficits and ever sinking support for military interventions it could, we may see German style hyperinflation in the United States of America.
To learn more and watch, The Fall of the Fourth Reich: Empire of Debt, visit FutureMoneyTrends.com
To view this video on YouTube, please visit: http://www.youtube.com/watch?v=dGBpFscDzX4
Media Contact: Juliet Ameduri Future Money Trends LLC, 888-421-7444, Daniel@futuremoneytrends.com
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SOURCE Future Money Trends LLC