Could the Weimar Hyperinflation Happen Again in America?

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

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.

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

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?

thats if they scrapped the currency, you could stop fiat currency creation slowly without having to replace the actual currency..(i think) perhaps we can discuss this at our next meeting of the secret order of zion

are you joking or what

fiat money is expanding at a never seen rate before, whats these reckless loans, bailouts, stimulus packages.

all this money right now is with the banks when it gets to the public inflation will rise so fast your pants will fall down. gold will obviously rise with it,
this will happen most likly in 2010-11 or maybe into 2012

Throughout history currency debasement has had only one outcome. Since Nixon ended the final link to the gold standard in 1971 then inflation has really taken off. For 300 years almost until the middle of the 20th century, prices of basic goods remained stable, despite various wars, recessions etc. Inflation was followed by deflation. The US has been engaged in deficit spending for decades. They have eroded the value of their currency as a matter of govt policy. That policy carries on today, because there is no other way to repay the national debt other than to inflate it away. Deflation is not an option.

In order for the money to get to the public, as you say, it needs to be borrowed. That means demand for lending and the willingness of banks to make the loans. The public is too busy paying down debt to go out and borrow and the banks have tightened lending standards. We"re not going to get a ramp up in bank money any time soon, and that's what's needed to induce inflation.

My concern is more with a long period of stagnation because of the debt overhanging everything. In order for the gov't to pay down that debt it's either going to have to print money (I don't think they're that stupid) or it's going to have to run a surplus. If it's running a surplus that means more tax income than fiscal spending, which means a net drain of reserves out of the system, reducing the monetary base.