Prices piece of bread 200 Billion, Money so 'Firewood' | 6-11-1923

radjab By radjab, 6th Nov 2014 | Follow this author | RSS Feed
Posted in Wikinut>Writing>History

Berlin - Today, 91 years ago, chaos struck aka German Weimar Republic because of extreme inflation or hyperinflation. Currency value dropped to mark the tragic point, 4.210.500.000.000 per one US dollar.

The robber, thief, and thieves cease to operate. Therefore, money is no longer worth stealing and deprived.

A loaf of bread value reached 200 billion mark, much more expensive than the price in January that 250 mark. On payday, the workers took home a pile of money in the bag. Even so many to be transported by wagon!

As quoted from the BBC, unique stories again concern arises. "Someone forgot to leave the suitcase containing the money. When you return to the site, he found his money intact, only the stolen suitcase."

Prices rise quickly. A boy who told his parents bought 2 rolls tempted to play ball. Finished playing, he headed for the store. Apparently, the money he was carrying could only buy one bread alone. "A father to Berlin to buy a pair of shoes. When we got there, the money he had brought, he was only able to buy a cup of coffee and a bus ticket home."

But there also are to benefit. For example, someone who borrowed money to buy a herd of cattle. And he was quite sell one cow to pay off all its debts. The jobholder is also relatively safe, they negotiate their salaries every day. Salary given up to 3 times a day, the wives waiting outside the office and ready to receive and then spend the money as quickly as possible.

"Unfortunate override retirees and those who have huge savings. A woman selling her house. He intends to use the money to finance his life. A few weeks later, all the money he had not even enough to buy a loaf of bread," the BBC published.

People even use the money as a fuel, because its value is lower than coal and firewood. Burned in a stove or heating appliance. Meanwhile, the boys play around with a pile of real money. Not the fake money.

At that time, Eugeni Xammar, journalists daily La Veu de Catalunya - Barcelona-based - was sent to Berlin. He became witnesses rise in prices was crazy.

"The price of a tram ticket, meat, cinema ticket, tuition, newspapers, haircuts, sugar, bacon, up every week," wrote Xammar in February 1923.

"People do not know how long their money's worth, the people suffered fear, not thinking anything except eat, drink, buy, and sell. This is a topic that is discussed throughout berlin: the dollar, the mark, and the price ... You see? Geez , stop this! I just bought supplies sausage, ham, and cheese !, "wrote Der Spiegel's website.

All Starting from War...

When World War I on July 31, 1914, the Central Bank of Germany at that time, the Reichsbank stopped convert paper money issued to the gold reserves. After that, there is no legal limit to how much money is printed.

To finance the war, the government chose to borrow large sums of money rather than impose a tax on the people. The debt was scheduled to be paid by the enemy after Germany won the war. But plan living plan. Germany on the losing side.

After the war, the need to pay off debts and reconstruct the economy after World War I resulted in German government spending far beyond its income.

To finance its expenditure, the government prints more money. Inflation is inevitable in the Weimar Republic - the parliamentary republic established in 1919 after the fall of the monarchy.

Debt to France as a result of the defeat of the German war made matters worse. Inflation is inevitable extreme.

The economic crisis could be resolved after the German government created an independent central bank and launching a new currency, rentenmark.

Experienced the chaos of postwar Germany did have another side effect: giving the opportunity for the emergence of nationalist socialist party leader (Nazi): Adolf Hitler, who later became dictator.

In addition to the crisis in Germany, November 6 tinged number of significant events. In 1860, Abraham Lincoln was elected the 16th President of the United States.

In 1963, Duong Van Minh formally took over the government in South Vietnam a few days after the assassination of President Ngo Dinh Diem against.

Tags

6-11-1923, Economic Crisis, Extreme Inflation, Finance The War, Germany

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author avatar viewgreen
6th Nov 2014 (#)

Interesting article... Thank you :)

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