tag:blogger.com,1999:blog-502356674750161309.post8386402051407199497..comments2008-11-25T12:59:19.064-08:00Eric deCarbonnelhttp://www.blogger.com/profile/08023745289801416061noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-502356674750161309.post-14040181262938838612008-11-25T12:59:00.000-08:002008-11-25T12:59:00.000-08:00According to Schacht, then, not only did the government not cause the Weimar hyperinflation, but it was the government that got it under control. The Reichsbank was put under strict government regulation, and prompt corrective measures were taken to eliminate foreign speculation, by eliminating easy access to loans of bank-created money. Hitler then got the country back on its feet with his Treasury Certificates issued Greenback-style by the government.<BR/><BR/>This alleged school book example about the government allways causeing hyperninflation is biased allied post-war pro-private banker propaganda:<BR/><BR/><A HREF="http://www.webofdebt.com/articles/bankrupt-germany.php" REL="nofollow">klick</A><BR/><BR/>"Schacht actually disapproved of this government fiat money, and wound up getting fired as head of the Reichsbank when he refused to issue it (something that may have saved him at the Nuremberg trials). But he acknowledged in his later memoirs that allowing the government to issue the money it needed had not produced the price inflation predicted by classical economic theory. He surmised that this was because factories were sitting idle and people were unemployed. In this he agreed with John Maynard Keynes: when the resources were available to increase productivity, adding new money to the economy did not increase prices; it increased goods and services. Supply and demand increased together, leaving prices unaffected."Lars Ostermanhttp://www.blogger.com/profile/13311209297465337290noreply@blogger.com