Don't Buy Real Estate for Hyperinflation!

50 Million Mark Note

Some people think their property ownership will get them through a hyperinflationary period. Apart from the value of food grown in the backyard garden, these homeowners couldn't be more wrong! Check out the table below which details how the value of real estate plummeted during the Weimar Hyperinflation 1922-1923 in Germany, while the prices for food and clothing soared.

Housing/Rents as a Percentage of Household spending

WEIMAR - Living Costs, Family of Four

Weekly Cost : Total in Marks : - - - - Percentages - - - -
========== . . . . . . . . . . . : Food / Housing / Clothing
1914 (prewar) : ............ 21.5 : 46.5%/. 25.6% / .. 27.9%
January 1920 : .............. 164 : 52.4%/. 04.9% / .. 42.7%
January 1921 : .............. 218 : 63.8%/. 04.1% / .. 32.1%
January 1922 : .............. 396 : 64.8%/. 02.8% / .. 32.3%
July...... 1922 : ............ 1232 : 56.8%/. 01.1% / .. 42.0%
January 1923 : .......... 25,123 : 52.1%/. 01.2% / .. 46.7%
July...... 1923 : ........ 654,608 : 59.8%/. 00.4% / .. 39.8%
Nov. ..... 1923 : ... 14.408 Bn. : 64.9%/ 00.26% / .. 34.8%

source: Hyperinflation handout

Here it is : 0.26%, in Nov.1923, down from 25.6% in 1914.
That's 1/100th of its original percentage - an enormous collapse !!

Time is running out fast! Hyperinflation seems unavoidable as fiat paper money is being printed as fast as the US presses can run. To protect your wealth and your family, buy gold and silver now from these top companies, APMEX Gold and Silver and Silver American Eagles.

Rick

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Life in Hell: German Weimar Hyperinflation

From 1922-1923 the German people suffered under the torture of hyperinflation. The snippets below help the reader to begin to understand the hell the average German citizen experienced:

• In September 1922, a loaf of bread cost 163 marks. One year later in September of 1923, this figure had reached 1,500,000 marks. A few months later at the peak of hyperinflation, November 1923, a loaf of bread eventually cost an inconceivable 200,000,000,000 marks!

• People were paid by the hour and rushed to pass money to loved ones who hurriedly bought whatever they could before the paper notes lost their purchasing power.
  

• People had to shop with wheel barrows full of money.

• Bartering became common - exchanging something for something else but not accepting money for it. Bartering had been common in Medieval times!

• Pensioners on fixed incomes suffered and starved.
  

• Restaurants did not print menus as by the time food arrived…the price had gone up!

• The poor became even poorer, and by the winter of 1923 meant many lived in freezing conditions, burning their meager furniture for heat.

• The very rich suffered least because they had sufficient contacts to get food, etc. Most of the very rich were land owners and could produce food on their own estates.

The group that suffered the most - proportional to their income - was the middle class. Their hard-earned savings disappeared overnight. They did not have the wealth or land to fall back on as the rich had. Many middle class families had to sell family heirlooms to survive. It is not surprising that many of those middle class who suffered in 1923, were later to turn to Hitler and the Nazi Party.

Time is running out fast! Hyperinflation seems unavoidable as fiat paper money is being printed as fast as the US presses can run. To protect your wealth and your family, buy gold and silver now from these top companies, APMEX Gold and Silver and Silver American Eagles.

Rick

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Weimar Hyperinflation vs. US Dollar

German Children Playing with Worthless Paper Reichsmarks

During the Weimar Germany hyperinflationary period (1922-1923) the Reichsmark lost value rapidly against the US Dollar. Review the information below for conversion rates as the hyperinflation progressed:

Timeline of Weimar Republic Hyper-Inflation (Reichsmarks per USD)

June 24, 1922: 272 Reichsmark (RM) to $1.00 US
July 1922: 670 RM
August 1922: 2,000 RM
October 1922: 45,000 RM
November 1922: 10,000 RM
December 30, 1922: 500,000 RM
February 1923: Reichsbank buys back RM (or reichsmark); stabilizes RM at 20,000 to 1 US dollar
May 4, 1923: RM 40,000
June 1, 1923: RM 70,000
June 30, 1923: RM 150,000
August 1-August 7, 1923: RM 3,500,000
August 15, 1923: RM 4,000,000
September 1, 1923: RM 10,000,000

Around September 10 to September 25, 1923: Prices reportedly rise hourly in several German cities.

September 30, 1923: RM 60,000,000 = 1 US Dollar

November 15, 1923: Rentenmark issued; pegged to the Gold Standard; Rentenmark 4.2 = 1 US dollar; at this time: Old Reichsmark 4,200,000,000 = 1 US dollar.
1 New Rentenmark = 1 Billion Old Reichsmark!

Only the issuance of the Retenmark, backed by bonds indexed to market prices (in paper Marks) of gold, brought the out of control hyperinflation to heel.

Time is running out fast! Hyperinflation seems unavoidable as fiat paper money is being printed as fast as the US presses can run. To protect your wealth and your family, buy gold and silver now from these top companies, APMEX Gold and Silver and Silver American Eagles.


Rick

CLICK ADS BELOW FOR FREE DISCOUNT!