Friday, September 14, 2012

Weimar remembered or possible case for gold

The following charts are not new, but illustrate what is possible when a country attempts to buy up debt via money printing. The source of these charts are http://jessescrossroadscafe.blogspot.com, JP Morgan, and the source of all knowledge, Wikipedia.

I provide these charts just for illustrative purposes.

The increase in German stock market from 1919 through 1923


A proxy for the inflation rate in Germany a la early 1920...... doing some simple math you would have had a total loss in real terms if invested in stocks
File:GermanyHyperChart.jpg

But gold and silver skyrockted, and according to this chart more so than either stocks or inflation.


No comments:

Post a Comment