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Mefo bills -- Hitler's yield farming stablecoinen.wikipedia.org/wiki/Mefo_bills
345 sats \ 21 comments \ @standardcrypto 4 Jul bitcoin
"An imaginary company
Hjalmar Schacht formed the limited liability company Metallurgische Forschungsgesellschaft, m.b.H., or "MEFO" for short. The company's "Mefo bills" served as bills of exchange, convertible into Reichsmark upon request. "MEFO had no product, service or operation. It was solely a balance sheet entity.
Mefo bills were issued to mature in six months, but with a provision for indefinite 90-day extensions at the government's behest. To further entice investors, Mefo bills carried an annual interest rate of 4%, higher than that of other trade bills at the time."
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100 sats \ 14 replies \ @bitcoingraffiti 4 Jul
What I don't understand is that 'it didn't lead to inflation'. No, the Reichsmark wasn't inflated, but the MeFo bills were, right?
Wikipedia also says that the maturation was constantly pushed into the future so that nobody would redeem for 'cash' (though these MeFos did circulate between companies as payment medium).
I am sure there must have been some kind of impact from this kind of fiat/assignat equivalent.
Anyways, cool story, great title.
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0 sats \ 13 replies \ @Solomonsatoshi 4 Jul
Buying these MeFos would take Reichmarks out of circulation...reducing inflation. People would rather hold MeFos and get 4% annual return than hold Reichmarks and get zero or lesser return. You could redeem for Reichmarks at any time you want, but who would want when you get a superior return by holding MeFos? Clever way of getting the market to finance government deficits...similar to USTs. Maybe Trump has something similar planned for stablecoins- where stablecoin issuers must buy USTs as backingfor the stablecoin. Freeing your government from rentseeking Jewish banksters.
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21 sats \ 1 reply \ @standardcrypto OP 4 Jul
https://dynasty-auctions.com/en/items/soldier-be-warned-jew-an-antisemitic-poster-warning-nazi-soldiers-from-the-jews-2/
Those pesky jews, with their annoying uninflatable money. Damn them!
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5 sats \ 0 replies \ @Solomonsatoshi 4 Jul
All the European powers turned to fiat money at the outbreak of WW1. They never returned to a true gold standard. They ended up both militarily and monetarily subservient to the USA and its FED which is owned by Jewish bankers and which operates the grandest fiat monetary hegemony ever over the entire planet. Chinas mercantile expansion and independence from Jewish bankers is a challenge they face now. The Saudis have joined mBridge and sell more of their oil to China than any other market. Iran and Russia already sell their oil and gas to China via CIPS and other protocols outside of the SWIFT/ fiat USD petrodollar protocol.
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21 sats \ 10 replies \ @bitcoingraffiti 4 Jul
Yeh, but the jig is up once the people will redeem, no? What if that 4% doesn't cover the mefo inflation rate (at a later stage)? This all sounds quite unsustainable in the long run.
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21 sats \ 9 replies \ @Solomonsatoshi 4 Jul
Oh for sure but when the bigger plan was in Germanys case expand your resource base and wealth by acquiring more territory its a viable funding program!...and free of meddling Jewish parasites who bank most of your opponents. If the general inflation rate increases then you must increase the rate of return on the MeFo but as long as the prospects of German territory expansion remain positive all is well! Its like investing in a tech stock which is not currently making a profit but has the potential to...until it doesn't.
In USAs case it is perhaps more a matter of managing a declining empire that has not been living within its means for many decades in the fact of the rising Chinese empire. Short term funding can help manage decline and may enable a better outcome than a collapse of USD hegemony which could otherwise occur if you cannot sell those USTs before Christmas!
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26 sats \ 1 reply \ @bitcoingraffiti 4 Jul
Hitler put his fingers on his chin, and with a pensive look said, "So you're saying that if our loot rate is higher than the mefo M2 rate...we're good, right?"
Schacht nodded and they high-fived.
Oh, what a wonderful plan our top Jerries had concocted on that sweltering day in the summer of '34. What could possibly go wrong?
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0 sats \ 0 replies \ @Solomonsatoshi 4 Jul
The global Jewish banking cartel shapeshifted itself back into the dominance it has enjoyed for centuries...and still does, although China is now a credible challenge to them. Life and evolution need competition to function.
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5 sats \ 6 replies \ @bitcoingraffiti 4 Jul
But as an investor in these MeFo's, wouldn't you feel totally scammed once they pushed the maturity dates? I mean how many of those MeFo's were redeemed? If you only get 4%, you're gonna have to wait 25 years to merely gain the principal back. I mean what was the redeem rate? Ten years later the German empire was busted. Sounds like you should have better kept your Rentenmarks.
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5 sats \ 5 replies \ @Solomonsatoshi 4 Jul
The MeFos could be redeemed at any time for Reichmarks. As they paid more than any other similar liquid asset people did not generally want to redeem. The German government pushed back the automatic redemption dates because people where happy to continue holding- until they weren't. Certainly once the German expansion project was in retreat, then demand would presumably have evaporated, but for quite a while the prospects looked good....until they didn't! Like USTs, with MeFos, you are/were investing in the success, or otherwise, of the empire that issued them. It's all good, until it isn't...
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1000 sats \ 1 reply \ @Doktor 5 Jul
You guys should now, back in these days when Germany was bankrupt after lost WW1 the Treaty of Versailles in 1919 imposed harsh reparations and territorial losses on Germany. These conditions led to severe economic hardship, widespread starvation, and deep national resentment for ~ two decades.
After Weimarer Republic suffered under this conditions and went down the later called third Reich needed a way to gain power again. But they also faced the Treaty of Versailles.
The MEFO Bill (in Germany called: MEFO-Anleihe) was a key financial instrument to secretly bypass the restrictions of building military power. It was the Shitcoin for the Third Reich to print money without axes take a note. This was the main reason it got introduced.
It was a scam all the way. Intention to pay back with robbed money from war or pay with concurred land in the east or scam these people 'fuck it' we lost.
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0 sats \ 0 replies \ @standardcrypto OP 6 Jul
well said.
And there's no reason a future national shitcoin couldn't attempt a similar maneuver.
Looking at you, stablecoins!
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0 sats \ 0 replies \ @Solomonsatoshi 4 Jul
Hitler freed German finance from the clutches of Jewish usury, for a while.
Perhaps Trump is hoping to use stablecoins in a similar way to reduce US dependence upon the Fed?
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0 sats \ 1 reply \ @guerratotal 4 Jul
Wow, how interesting, what most catches my attention is that it says that
Germany through MEFO bills, began printing money. However, inflation did not increase. This is because the Nazi government rarely redeemed MEFO bills. In addition, the interest rate and supposed security of the MEFO bills meant most were kept in circulation and rarely cashed
It's as if they've created a parallel economy
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23 sats \ 0 replies \ @standard_sats 5 Jul
Almost. It was a part of bi-dorectional trade system with satellites. This is why there were no inflation.
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0 sats \ 0 replies \ @standardcrypto OP 4 Jul
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