Currency Re Valuation: How To End Hyperinflation
Knock a couple of zeros off the end and reissue new currency back by real assets.
Digital currency is not backed by real assets. The enemy wants you to continue to use man made, rather than God made currency. Hence why more and more digital currency is coming onto the scene. However, we will be returning to asset backed currency.
Let’s review the case study of Germany to see what leads to hyperinflation and how we are going to end it globally.
How Germany ended hyperinflation....
Post world war one the German currency inflated to the point that a loaf of bread cost a wheel barrow full of cash. Hyperinflation needed to be quickly ended. The German government had two options ’gradual’ or ‘cold turkey’ methods I laid out in my piece, “Hyper Inflation” (https://michaeljpenney.com/blogs/news/hyper-inflation). Rising inflation would cause greater strife and undo strain on international relations through the rise of extremist groups push beyond the brink.
- August 1923, Gustav Stresemann was appointed as Germany’s new Chancellor
- September 1923, Stresemann announced the end to resistance to the occupation of the Ruhr
- November 16, 1923 the Reichsbank mark was replaced by the Rentenmark.
Rentenmark had 12 zeroes (000,000,000,000) taken off. It was sub- divided into 100 Rentenpfennig. This new currency was stable. It ended the crisis. One example, a German newspaper that cost 1 billion marks in November only cost 20 pfennigs in December. Effectively putting buying power back into the hands of the consumer.
Rentenmark’s were a success because their value was backed by REAL ASSETS; hence only a limited number of notes were printed, which made it harder for them to lose their worth. However, Governments and businesses could not borrow Rentenmarks, as they were only a temporary currency.
August 30th 1924, the Reichsmark was introduced as a new permanent currency. One Reichsmark was equivalent to one Rentenmark. The Reichsmark became the official currency, however, both remained in use as German notes until 1948.
People believe that hyperinflation undermined the democratic process, allowing the rise of extremist parties. This is one leading theory to the rise of the Weimar Republic, because the crisis of hyperinflation was ended so quickly. Which is what ultimately led to the power vacuum and the rise of the 3rd Reich.
The utter shock of destabilizing the government, the currency, and the people overall sent the masses into a frenzy. Many of the citizens blindly followed leaders who were proposing unified outcomes, Marxism. Everyone gets the same result – poverty.
The destabilization of a currency and a peoples led Hitler exterminating people.
Present day America, we are seeing a huge increase in hyperinflation due to the federal reserve and overall central banking system increasing the amount of fiat currency we currently have in circulation. How we fix this is by reissuing new currency while devaluing the old currency.
Everything is still ran electronically through our local lending institutions. However, frankfurters are only going to cost a nickel.
But what does this mean for the money in our accounts?
The price of goods goes down while the power of the dollar, you have, goes up.
So why is the stock market not reacting to this? Because the markets are in a bubble around big tech.
But what about digital currency? It is man made currency and thus does not retain value as does asset backed currency.
Man made money is infinite – gold, silver, water, land are not.
The money in your bank account increases in power as the cost of things decreases.
Please leave your comments below. I sincerely wish to hear your thoughts on the subject. THANK YOU!
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