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Horror Stories of Hyperinflation: Germany in 1920s


are you complaining about the pricew
constantly going up then you might want to watch this video
about one of the most unbelievable cases of hyperinflation in
history! That is hyperinflation in Germany in the
1920s where is some point prices doubled
almost every four days! hyper-inflation occurs when the
inflation rate increases very rapidly resulting in prices going up very fast
and the currency losing its value quickly. One of the most amazing hyper-inflation
cases in history happened in Germany in the 1920s. As the
result of World War I, the German Papier Mark started to lose
its value and this process accelerated in 1920s. In 1923 prices eventually run out of control. The
prices went up so much that people were forced to spend billions of Marks on the
daily items and were dizzied by the amount to zeros
involved. As an example, a loaf of bread which cost
250 Marks in January 1923, rose to 200,000 million Marks in
November 1923. Or a newspaper that was sold for 1
Mark in May 1922, had a price tag at 70
million Marks in November 1923! It was cheaper to use
the bac of the 1 million Mark to write notes, as a notepad but cost
billions of Marks. Some had to use wheelbarrows filled with
cash to get a cup of coffee! At restaurants, customers had to
negotiate the price of the food in advance as there was a good chance that the
price could change before the meal was served! Most restaurants did not put the price on menus because by the time the food would arrive the price had already gone up! At some
point the situation got so bad that the prices with doubling almost every 4 days. There is evidence
that it was cheaper to burn marks instead of wood or coal! Some used Marks instead of wallpaper to
decorate their walls! Children also used bundles of Marks instead of toy bricks. Workers also had
to negotiate their wages almost on a daily basis. Some had to use
a scale to count the weight of their money to get its value. It was difficult to count all the bills!
Workers were paid twice a day so they could spend the money quickly
before it lost its value! Many collected their wages and suitcases. One person who left his suitcase
unattended found the thief had stolen the suitcase
but not the money!! After collecting their wages, workers
would quickly rush to either buy daily goods or pass the money to their family so
that they’d spend it before its value has gone down. The German government eventually
managed to stabilize the situation by taking a number of initiatives
including cutting twelve zeros from the Papier Mark, replacing it with a new currency called
Retten mark. However, the economic pressure on
Germans eventually contributed to the rise of the Nazi Party that use Germans dire economy to attract public support and eventually
gain power.

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39 thoughts on “Horror Stories of Hyperinflation: Germany in 1920s

  1. What about Yugoslavia at the beginning of 90's? As much as I know, that was highest hyperinflation in history.

  2. That is a good point. Actually, the worst case in history is Hungary in 1940s, but Yugoslavia is certainly amongst the top 4. We are planning to make videos about hyperinflation in Yugoslavia as well, so stay tuned!:)

  3. If Germany had been on the gold standard at this time, they would have just completely ran out of gold.

    Germany's inflation was due to extreme war reparations and sanctions following WWI, not because of some quirk of fiat currency.

    #TheMoreYouKnow

  4. Years ago I had a neighbor who was in Germany in the early to mid-1920's. He told me that before the start of inflation a good lunch would cost a U.S. silver quarter, and when inflation exploded he could still use a quarter (90%) silver to buy that same lunch!

  5. Great video ! I have shared your video on DiziVizi by tagging it to Berlin,
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  6. Citizens of the world: please learn of the hiperinflation and its horrible consequences to the families. Right now in Venezuela we're living an inflationary spiral as it happened in the interwar Germany. We literally need sacks full of bills to buy just a few of basic foods. This is what happens when government get acces to the central bank's public money. Never forget it

  7. If prices rise as a result of hyperinflation, would wages increase as well to meet the need of purchasing goods and paying bills? Or is everyone just screwed?

  8. The same thing is happening in Venezuela now. Hyperinflation has made the bolivar so worthless people are using it for arts and crafts. It's created a humanitarian crisis that is destroying the country.

  9. And then there are people who dont understand that this might actually cause Exactly what we saw happening a few years later.
    A guy takes power, and we see others declaring the war on March 24th 1933.
    And eventhough the guy in power is ofcourse backed by the same people, we are told that this guy is the one who came up with all the horrific things that happened during that time.
    Wonderful.
    Oh, what a tangled web we weave, when first we practise to deceive.

  10. Their debt was due to war reparations. But Germany didnt want to deliver gold to pay for it. So they printed their currency to pay off the debt until no one wanted it any more.

  11. Philippines is about to have this in the future

    1$ = 53 Pesos

    And it is now starting this happens because it was caused by The Countrys that invaded us and it is also caused by some of our Corrupted Government

  12. We in yougoslavia had 50 000 000 000 dinars. If you would like to see that nitesee my channel and gi e me one sub

  13. This is the reason why people store their extra money in gold.. Currency is unstable and is pretty much guaranteed to go down

  14. Meanwhile in Nov 2019, the Central banks are printing , $, €,£,¥ like its 1922 Again.

    Governments totally in debt and are borrowing to just pay interest on their huge unplayable debts, central banks unable to raise interest rates, or stop the money printing….Nothing to see here, I’m sure it will be fine 😜

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