pull down to refresh

115 sats \ 4 replies \ @Bell_curve 5 Mar \ on: When Money Dies In The 21st Century econ
Weimar Republic had a reason for inflating its currency. Reparations from Versailles treaty. Pay using weak currency
write
preview
62 sats \ 1 reply \ @siggy47 OP 5 Mar
No doubt. Every situation is different. The US motivation is massive government spending.
reply
52 sats \ 0 replies \ @Bell_curve 5 Mar
6 trillion dollars budget and increasing.
This should be the focus, deficits are noise.
All spending is taxation. Real tax is what government spends.
The problem today isn’t deficit spending but high spending in general.
Deficits are fine if total spending is low.
Keep your eyes on total spending, that is the critical metric
reply
0 sats \ 1 reply \ @Signal312 6 Mar
But they had to pay reparations in gold, didn't they?
reply
0 sats \ 0 replies \ @Bell_curve 6 Mar
Maybe initially but the terms were revised under the Dawes and later Young plan.
France tried to enforce reparations by seizing the Ruhr valley and Rhineland.
Germany stopped making payments after 1933. Payments were suspended because of the Great Depression
reply