This is well known.  But you can’t buy votes otherwise.  And that’s how you get elected.

A very good reminder of a photo-essay, and it seems possible that it connects directly to the post below about the Germans ‘wrecking’ the global New Deal.  No wonder Angela Merkel refuses to be told they must spend more money - perhaps Germans actually remember?  It was a German company that was printing the endless supply of currency for Zimbabwe until very recently (a friend told me last week he had bought on eBay a trillion-unit note in their currency, for about $20, as a souvenir of these times). 
It’s particularly interesting that both Merkel and her husband are PhD scientists, quite a difference to every other leader at the august G20 gathering.  Ben Bernanke also studied the Great Depression but what has he learned?  These days, due I guess to the relative rigor of science education, professional scientists often remember far better than their academic colleagues in the humanities (such as Obama, who doesn’t seem to remember anything except his own prejudices, nor to have learned from the past he should supposedly have studied).  This photo essay is a great aid to memory.

Comment deleted by elf.

Inflation eventually destroys savers, but it provides a decided (if temporary) advantage to those first-in-line to receive the newly printed money. The first-in-line get to spend that money at its old value, and only later do others pay the price.

Who are first-in-line to receive the “stimulus” moneys? Cui bono?

In Weimar Germany BTW the preferred barter “money” was NAILS; durable, necessary, portable, and extremely easy to count. I also had the interesting experience of working in Bolivia at a time when it was far cheaper to use 1000 Peso notes to wipe your bottom than to purchase TP, provided you could find it. Much softer, too.

1. Br. Michael wrote:

“This is well known.  But you can’t buy votes otherwise.  And that’s how you get elected.”

I agree, but would a truly educated society have such a problem?

I doubt it.

Don

Yes, but the inflation of the mid to late 1970’s did enable the burden
to be eased on those who had purchased fixed-rate mortgages
in the late 1960’s. As inflation set in, the price level including the
price of labor also went up. The rise in wages represented an
easing of the mortgage debt load carried by property owners
having fixed-rate mortgages.

  If I’ve understood the present day situation correctly, the printing
of money will allow the government to purchase toxic assets from
banks and lending institutions. This inflationary policy may be
necessary to rescue the banks and their shareholders, but the
inflationary result may also benefit individual homeowners. This
seems straightforward to me. What did I miss ? And yes, if we
do expect serious inflation, wouldn’t the preference be to purchase
property now and pay it back in debased dollars ? Again, what did
I miss ?

Don, I must disagree.  We all want something for nothing and the free lunch.  Even “educated people” fall prey to this.  Just look at all the social spending.

Ichabod,
Inflation hurts those who have been thrifty and played by the rules.  Banks do not manufacture money to lend.  They borrow that money from people and companies (that employ people).  In inflation, the lenders (people and companies) are hurt worse that the borrowers are helped.  Inflation leads to a wage/price sprial and to everyone becomming “millionaires” but where a cup of coffee costs $300.

YBIC,
Phil Snyder

If we do begin to experience hyperinflation…I will max out my credit cards and take as much out in loans as I can…buy canned goods, auto parts, ammunition, chocolate, sugar, rice, etc.  I will also delay as long as possible the paying off of debts.

I think my first word should have been “when”, not “if”.

I have been expressing my concern about what I believe is going to happen (hyperinflation) since last November.  I don’t see how we can print as much paper notes as we have and not have hyperinflation.

Will the Federal Reserve have the guts to raise interest rates?  I don’t think so.  If the leadership had any intestinal fortitude, we would not have done the bailouts…read that as “monetizing the debt”...in the first place.  If they finally do the right thing and raise interest rates, I will take whatever ready cash I have and buy bonds and CDs.

7. Br. Michael wrote:

“Don, I must disagree.  We all want something for nothing and the free lunch.”

But a good education, to me, is founded in ethics and manners. It is not founded soley in knowlege, else 1930’s Germany would be the world’s shining star of twentieth century.

Don

The inflation bread loaf is already in the oven and it is rising nicely. The Dems have already insured we will have to deal with a big inflation bomb in less than two years. Massive deficit spending, much more even than Bush luxuriated in, will do that to you.

Increased productivity can get us through this without inflation. That is the issue that no one seems to talk about. I am not saying that productivity will increase; just that it is just as important as all of these reactionary policies currently underway. Productivity depends on the availability of recourses, work effort, regulation, the stability of a society ( such that long term investments can be made) and technology. Past technological breakthroughs that have led to increases in productivity include the electrification of America, the interstate highway system, computers, the internet, etc.

‘But a good education… is not founded soley in knowlege’
You ken say that agen!

OK, now I’m sure that azusa’s remarks here and on the thread about Merkel are facetious.  Interesting comment in #12, though, about productivity.  It strikes me that maintaining or increasing productivity in the US under the current government may be very challenging.  I recall working at a major resources corporation during a hostile takeover attempt.  Employees were co-opted to work telephone banks and calm overheated stockholders, and overall productivity in the organization dived as morale was battered (though the takeover was successfully fought off).  It will be interesting to see how productivity goes now.  I would certainly have problems morale-wise working hard at my job, under this arrogant, presumptuous and narcissistic administration.