The Coming Hyperinflation

Part I

In 1923 the French army occupied German soil, so as to make sure they collected their reparations owed them by Germany.  Germany had lost World  War I and was blamed for starting it; thus the tribute the English and French demanded  of them.  The Germans in the occupied area went on strike.  To subsidize the strikers the German government started the printing presses.  The hugh amount of extra Marks (Germany currency) in circulation led to the usual inflation (when money is printed with no increase in output).  Money began to become worthless. Many more marks were needed, e.g. to purchase dollars.  It got out of control and became, what one calls hyperinflation, an uncontrollable decrease in the purchasing power of money. 

Think of this in terms of a Mickey Mantle baseball card.  If this card is scarce; it becomes valuable.  If large amounts of this card are created it quickly loses its value, or what people are willing to pay for it.

To be continued: