Today I'm going to talk about inflation. What is inflation and how does it arise? It's relatively easy to explain: if too much money meets too few goods, then the person who is willing to pay a higher price gets the goods. During the hyperinflation in Germany in the 20s, a loaf of bread cost 23 billion marks in March 50 and 50 billion marks in November. How did the situation come about back then?
The French occupied Germany after World War I to collect reparations. The German state therefore called for a general strike (i.e. not to work and to stay at home) and still continued to pay the citizens their wages with printed money, but of course much less goods were produced this way. When the French then withdrew, they wanted to spend the money they had received and there were not enough goods. That's why the prices exploded at that time and in the end all accounts were of course at 1. That was the case in all cases of hyperinflation (see Argentina 0, for example).
Considered today, we see great parallels here and now we are experiencing a similar effect. This is additionally intensified because money without equivalent value was already being printed beforehand. Keyword «fiat currency». The war fuels the shortage of goods even more, but the problem comes from elsewhere and was there before. That has not yet happened, which is unfortunately to be feared, but we can already think about who we should put our trust in if we restart. And the question also arises, how do the people who can no longer afford the bread react? Current example see Sri Lanka…
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