Could the Weimar Hyperinflation Happen Again in America?

This is a discussion on Could the Weimar Hyperinflation Happen Again in America? within the Economic & Fundamental Analysis forums, part of the Methods category; Genics old boy if fiat money collapses that is the ultimate inflation......

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Old Jul 13, 2009, 3:28pm   #22
 
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Genics old boy if fiat money collapses that is the ultimate inflation...
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Old Jul 13, 2009, 3:31pm   #23
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I think a better and more recent example would be Argentina who increased deficit spending in response to a recession. Falling taxes, bank failures and printing money leading to a loss of confidence in its currency as the country struggled to meet debt payments.
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Old Jul 13, 2009, 3:32pm   #24
 
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America aint Argentina is it though. Argentina debt was in foreign currency which as most people know is economic suicide.
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Old Jul 13, 2009, 3:33pm   #25
 
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Quote:
Originally Posted by arabianights View Post
Genics old boy if fiat money collapses that is the ultimate inflation...
how? if fiat money ceased to exist inflation wouldn't really be possible on the same scale as it is now..countrys would be forced to live with in their means
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Old Jul 13, 2009, 3:41pm   #26
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America aint Argentina is it though
The only difference is perception. Paper money is a reflection of the value of a nation and its productivity. The US has massive debts and is expected to keep borrowing trillions for years to come.
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Old Jul 13, 2009, 3:44pm   #27
 
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see me edit to the post. also Weimar Germany's debt was issued in foreign currency. using either as a comparison to the current situation is null and void.

"See, if your currency declines when you have issued debt in a foreign currency then the principal value of that loan has just gone up. This in turn causes your credit rating to decline (your debt-to-income goes up) which in turn forces your currency lower, which makes the principal value go up again, which....." KD
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Old Jul 13, 2009, 3:52pm   #28
 
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Originally Posted by Genics View Post
how? if fiat money ceased to exist inflation wouldn't really be possible on the same scale as it is now..countrys would be forced to live with in their means
inflation of the fiat currency would be infinity% as it would become worthless, dig?

Of course they could tie it to some commodity, but how would they back that up?
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