Quantitative Easing Did Not Work For the Weimar Republic Either

Mark notes are weighed by a woman in 1923. By then the currency was worth little more than the paper it was printed on.
Mark notes are weighed by a woman in 1923. By then the currency was worth little more than the paper it was printed on.

Did printing vast quantities of money work for the Weimar Republic? Nope. And it won’t work for us either.

Sadly, we have not learned the lessons that history has tried to teach us. Back in April 1919, it took 12 German marks to get 1 U.S. dollar. By December 1923, it took approximately 4 trillion German marks to get 1 U.S. dollar. So was the Weimar Republic better off after all of the “quantitative easing” that they did or worse off? Of course they were worse off. They destroyed their currency and wrecked all confidence in their financial system.And so what has Bernanke beem doing?

Printing MoneyHe’s printing up lots more money.

But isn’t this supposed to help the economy?

According to USA Today, the following is what Philadelphia Fed President Charles Plosser says about the effect that QE3 is likely to have on our economy….

Ben Bernanke
Ben Bernanke

“We are unlikely to see much benefit to growth or to employment from further asset purchases.”

Bernanke is destroying the credibility of our currency and he is destroying faith in our financial system.

Bernanke may believe that he is preventing the next great collapse from happening, but the truth is that what he is doing is going to make the eventual collapse far worse.

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