Ron Paul: “This is a visual demonstration of what can happen with runaway inflation. It’s entitled ‘German Hyperinflation’.
The one thing about the destruction of money is that it can be gradual and insidious, and not really rapid, but the end stages of the destruction of a currency can go much quicker. Sometimes it’s slower than one would anticipate, and at other times it goes much faster.
Take for instance right here, in September of 1923 in the German inflation, 10 million marks would buy a loaf of bread. But it wasn’t too long after that, a few weeks later, that it took 50 million marks to buy, and then a month later it took 500 million, and of course the whole thing fell apart.
So, nobody should be reassured because they don’t see a lot of price inflation going on right now. What they should be looking at is what the Federal Reserve is doing: printing money like crazy. The day that we have to dread is the day the people lose confidence, or the world loses confidence in the dollar, because that’s when prices will soar, interest rates will go up, and then we will be forced into devising another monetary system.
We already have seen the destruction of the dollar based financial system established in 1971. It has ended, and we’re going through that right now. But the only thing we’re trying to do is prop it up by more of the inflation.
And if we’re not careful, we’re going to get exactly what the German government and the German people had to put up with back in 1923, and what happened as a consequence. It was the political disruption that came from the economic disruption of the destruction of a currency that ushered in the age of Nazi Germany and the age of Hitler.
So, this is why I’ve always had such great concerns about the monetary system, not only because of the economic danger that it poses for us, but the political chaos that might result as a consequence, and then of course that is the destruction of our personal liberties.
The Founders understood this quite well, and that is why they had a prohibition in the Constitution that we could not emit bills of credit, that we could not print money endlessly. And that is what we’re doing, so the sooner we wake up here in the Congress, and the sooner the American people wake up to the danger of hyperinflation, the better it will be for all of us.”