Thursday, December 10, 2015

Germany and the ECB turn Greece into new Weimar Republic

In the 1920’s, the combination of Germany’s defeat in World War I, and the impressed war reparations put upon them by the allied leaders, led the European power to enter a phase of hyper-inflation the world had rarely seen up until that time.  And the economic devastation was so great, it not only led to the rise of a brutal dictator, but is also used today as an adjective to describe monetary systems that decline into a currency collapse.
But following World War II and the creation of a new global monetary system based on the dollar, central banks in the West were supposed to have the tools to never allow a Weimar event to ever occur again.  But perhaps in the most ironic of circumstances, one European nation stands on the cusp of a return to Weimar like hyper-inflation, with one of the main culprits pushing them over the precipice being Germany.


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