HomeLatest ThreadsGreatest ThreadsForums & GroupsMy SubscriptionsMy Posts
DU Home » Latest Threads » Forums & Groups » Main » General Discussion (Forum) » Eliminate the deficit ins... » Reply #7
In the discussion thread: Eliminate the deficit instantly [View all]

Response to SheilaT (Reply #5)

Wed Oct 3, 2012, 05:03 AM

7. not according to the man who stabilized the mark.


"The dollar reached an exchange rate of 12 trillion marks on the free market of the Cologne Bourse. This speculation was not only hostile to the country's economic interests, it was also stupid. In previous years such speculation had been carried on either with loans which the Reichsbank granted lavishly, or with emergency money which one printed oneself, and then exchanged for Reichsmarks.

Now however, three things had happened. The emergency money had lost its value. It was no longer possible to exchange it for Reichsmarks. The loans formerly easily obtained from the Reichsbank were no longer granted, and the Rentenmark could not be used abroad. For these reasons the speculators were unable to pay for the dollars they had bought when payment became due (and they) made considerable losses."

Hjalmar Schact, Stabilizing the Mark

According to schact, it was not the printing of money, it was the speculative attacks on the mark (i.e. short-selling).

The german hyperinflation began in 1922 a few months after the german central bank was made independent of control by the government -- i.e. run entirely by private bankers. (The autonomy law).

The german hyperinflation ended in 1923 when hjalmar schacht instituted regulations that made the speculation that had been going on much more difficult.

Reply to this post

Back to OP Alert abuse Link to post in-thread

Always highlight: 10 newest replies | Replies posted after I mark a forum
Replies to this discussion thread
Arrow 11 replies Author Time Post
abumbyanyothername Oct 2012 OP
hollysmom Oct 2012 #1
HiPointDem Oct 2012 #2
newfie11 Oct 2012 #6
orwell Oct 2012 #3
Blecht Oct 2012 #4
SheilaT Oct 2012 #5
LineLineNew Reply not according to the man who stabilized the mark.
HiPointDem Oct 2012 #7
davidn3600 Oct 2012 #8
abumbyanyothername Oct 2012 #9
HiPointDem Oct 2012 #11
Johonny Oct 2012 #10
Please login to view edit histories.