Weimar Germany 1923
The Ultimate Fate of “Bills of Credit” (paper money)
Also see What is a “Dollar”? • U.S. Money Standard: Constitutional “Dollar” • The Power “to Regulate the Value” of Money • “Right of Redemption” of Paper “Money” : The Monetary Conjurer’s Trick • “Legal Tender” Law: Opting Out
• Any State Can Walk Away From the Federal Reserve System: Alternative Constitutional Currency
• Any Individual or State Can Walk Away From the Federal Reserve System: Gold Clause
Weimar Germany 1923: The Ultimate Fate of “Bills of Credit” (paper money)
Unfortunately, many people are not very concerned about the ultimate collapse of the Federal Reserve System. Why? Because the Federal Reserve System isn’t collapsing…Yet. The Federal Reserve will collapse. It is inherently unstable. No one can be sure exactly when, but it will, as have all paper currencies throughout history. A typical response is, “It doesn’t matter to me, as long as the system keeps working”…”As long as I can take my paper money and go to the store and buy what I want, that’s fine with me.” Eventually, when the paper money “house of cards” collapses, so does the entire price structure that was based upon those notes.
- Weimar Germany 1923 (Weimar Republic): A classic case study in the final outcome of all paper money—depreciation and economic devastation.
Weimar Germany, 1923 June/early July an egg costs eight thousand German Marks. By the end of November 1923 (5-6 months later) the same egg costs 80 trillion Marks. The currency was depreciating so fast that they couldn’t print it fast enough to change the denominations. The paper marks would come into the banks and they would take a 1 million mark note and and rubber stamp it “1 billion marks”. The printing presses couldn’t run fast enough to keep up with it. One week later the system completely collapsed. The first week in December it was gone. No one was taking marks. There are photos of people burning piles of marks in their stoves that winter in Germany. like the one on this page. The currency was worthless. This has been the final result of all paper currencies, what the Constitution refers to as “Bills of Credit”, throughout history.
The price structure in Weimar Germany ran with that currency up until the very day that the currency died. The system was “working” up until that very day. It was the working of the currency that destroyed the country. And that is the naivete of the average person. It is the “working” of the Federal Reserve System that will destroy this country. If it is not changed, we will go into the septic tank of history. Take a good look at the photos above.
Honest, Sound Money is the Absence of Redeemability