Worgl Experiment: printing depreciating currency

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Old Sep 25, 2012, 4:57pm   #1
 
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Worgl Experiment: printing depreciating currency

Watched a TedX talk about economics and stuff.
Came across this one about the Worgl currency experiment in Austria in the 1930s.
Essentially, in order to kickstart some economic activity the mayor produced local currency that depreciated! What happened was that people worked, and rather than lose the value (1% per month), they spent it sooner than later, resulting in more work for others.
I found it quite fascinating.



a bit more detail: (I'm sure you can find more comprehensive explanations if you google.)
The Wörgl Experiment: Austria (1932-1933) | Currency Solutions for a Wiser World
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Old Sep 25, 2012, 5:30pm   #2
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Re: Worgl Experiment: printing depreciating currency

Already happening in Bristol and other places

Bristol Pound - Our City. Our Money
Bristol Pound - Our City. Our Money
http://bristolpound.org/video

This is what happens if you try that in the states
Bernard von NotHaus - Wikipedia, the free encyclopedia

Heres a couple of links to the Masters of Money series.
Bernard von NotHaus is featured in the second vid
BBC iPlayer - Masters of Money: Keynes
BBC iPlayer - Masters of Money: Hayek
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Old Sep 30, 2012, 9:25am   #3
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Re: Worgl Experiment: printing depreciating currency

Thanks trendie, c_v. Fascinating indeed.

IIRC, BBC run a news feature about a local (Greek?) currency several months ago
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Old Sep 30, 2012, 10:54am   #4
 
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Re: Worgl Experiment: printing depreciating currency

Talking about printing money, I seem to recall that Russia is second only to the USA in printing US dollar bills. All counterfeit but not really a problem outside of USA !

Both avid followers of Robert Mugabe's system !! He got right up to printing off $20 billion notes. and worthless. NOw that is economics African style.

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Old Sep 30, 2012, 11:36am   #5
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Re: Worgl Experiment: printing depreciating currency

$20 billion notes? I want some of those for my collection
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Old Sep 30, 2012, 11:44am   #6
 
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Re: Worgl Experiment: printing depreciating currency

Berkshares are in the states counter-violent. I'm also wanting to generate interest in silver backed notes here in the Bluegrass of KY. We need a backup currency over here for when USD goes into more severe inflation. popular support is lacking - man is a party animal, as long as things are going ok he's not going to plan for the possible future very well..

Bernard Lietaer also has interesting thoughts on local and competing currencies.
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Old Sep 30, 2012, 11:46am   #7
 
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Re: Worgl Experiment: printing depreciating currency

Speaking of Mugabe, I have a 100 trillion dollar Zimbabwe note framed in my trading room. I'm collecting Pengo, Yugoslav, Weimar, and continental paper notes for a hyperinflation hobby..

Last edited by natureboy; Sep 30, 2012 at 11:55am. Reason: Pengo not Pongo
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Old Sep 30, 2012, 11:52am   #8
 
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Re: Worgl Experiment: printing depreciating currency

The deal with the liberty dollar was coinage. The constitution, not that it's being followed, says no private coinage, yet is silent on paper money. That's how the Fed was able to hoist itself into existence legally I think (as well as the us central banks b4 the fed).
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Old Sep 30, 2012, 12:03pm   #9
 
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Re: Worgl Experiment: printing depreciating currency

Quote:
Originally Posted by natureboy View Post
Speaking of Mugabe, I have a 100 trillion dollar Zimbabwe note framed in my trading room. I'm collecting Pengo, Yugoslav, Weimar, and continental paper notes for a hyperinflation hobby..
Phew didn't know they went that high ?

How about now ?
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Old Sep 30, 2012, 12:10pm   #10
 
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Re: Worgl Experiment: printing depreciating currency

no clue.. i saw an article where people were gluing it to walls for graffiti .. showing the money had become wallpaper.. i think the people are just using euros, usd, gbp

i'll post a picture tomorrow of that note

Last edited by natureboy; Sep 30, 2012 at 12:11pm. Reason: add'info
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Old Sep 30, 2012, 12:46pm   #11
 
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Re: Worgl Experiment: printing depreciating currency

How about this million US $ note I have. Don't know where it was printed.

The average New Yorker would kill for it I expect.
Attached Thumbnails
img003.jpg   img004.jpg  
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Old Sep 30, 2012, 12:48pm   #12
 
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Re: Worgl Experiment: printing depreciating currency

oh yeah - you could trade that for the Z$ lol
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Old Oct 8, 2012, 7:51am   #13
 
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Re: Worgl Experiment: printing depreciating currency

zbuck.jpg

Here's that Zimbabwe note.. Relates to Worgl in that the instability in value in currencies like Z$ have happened other places..Yugoslavia, Hungary, Weimar Germany..or the deflationary 1930s. the consequent employment and manufacturing crises ... all were reversed just by having a stable currency. No inflation, no deflation, just what's needed for commerce. That's amazing that the Worgl Experiment could swiftly achieve stability in the face of worldwide economic depression
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Old Oct 8, 2012, 4:16pm   #14
 
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Re: Worgl Experiment: printing depreciating currency

Quote:
Originally Posted by natureboy View Post
Attachment 146686

Here's that Zimbabwe note.. Relates to Worgl in that the instability in value in currencies like Z$ have happened other places..Yugoslavia, Hungary, Weimar Germany..or the deflationary 1930s. the consequent employment and manufacturing crises ... all were reversed just by having a stable currency. No inflation, no deflation, just what's needed for commerce. That's amazing that the Worgl Experiment could swiftly achieve stability in the face of worldwide economic depression
could be worth a dollar or two in 50 years !

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Old Oct 9, 2012, 12:22am   #15
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Re: Worgl Experiment: printing depreciating currency

i really like this story. I came up with an similar solution to this a month ago when i was studying the 08 crisis. Mine is a little more strategic and cultural and slowly builds to remove money. It would work we just need a building load of money to do it. We can always start small and move up very quickly.
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