Silver and Monetary Considerations
By David Morgan
Founder of the Silver-Investor.com website
Hyperinflation in Germany
Many of you are probably too young to appreciate the full impact of the hyperinflation in Germany after WW1. It was devastating. This picture shows you the amount of paper that was equal to one silver dollar, or of one troy ounce of fine silver. After seven years of constantly accelerating inflation, the mark is finally stabilized at the rate of over 4 trillion to a U.S. dollar. The black market rate, however, was an incredible 12 trillion to the dollar at this time. The pre-inflation exchange rate for the mark was by contrast a modest 4.2 to the U.S. dollar. Can anyone say Hyperinflation?
I have looked at this picture many times, and during one of my presentations, it suddenly hit me that this amount of paper was roughly equal to the amount of value in a silver dollar. In other words, the commodity value of the paper was worth something, because paper can be burned to give off heat and certainly this is of value.
Full article here:
http://www.ibtimes.com/articles/20080801/silver-and-monetary-considerations.htm
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