SHTF - The Collapse (Part 1)

Uploaded by SHTFdoc on 20.08.2012

economic collapse
this is likely the disaster
that is most
commonly feared
and rightfully so
total economic collapse
seems more and more likely with each passing week
in a fractional reserve banking system
hyperinflation is not an
if it's a when
before explaining why hyperinflation happens in a fractional reserve
banking system
let me elaborate on what hyperinflation is
there with the commonly held misconception that hyperinflation is
the increase of prices for goods and services due to rapid economic
growth this is in fact quite wrong
is in fact the devaluation of currency
by a government creating mass amounts of that currency
in response to a failing economy
the more currency is created the less value it holds
rapid increase in prices is simply put a side effect of hyper-inflation
a prime example of this happened
in germany
in the years leading up to world war two
germany went through its worst inflation in nineteen twenty three
in nineteen twenty two the highest denomination was fifty thousand mark
by nineteen twenty three
the highest denomination was one hundred trillion mark
in december nineteen twenty three
the exchange rate was four point
to trillion mark
to one u.s. dollar
in nineteen twenty three
the rate of inflation hit three point five times ten to the sixth percent
per month with
prices doubling every two days
millions of middle class germans were ruined by
they became receptive to a rabid right wing propaganda and formed a
fertile soil for Hitler
the biggest
beneficiaries of this enormous redistribution of wealth where feudalistic
industrial leaders who distrusted a democracy
and who proved willing to deal with Hitler
thinking that they could control him
the democratic party and the labor unions
lost their capital and were weakened
the liberal democratic regime was discredited
this ultimately paved their way for hitler's rise to power
and the second world war
as we can see from this example uncontrolled hyperinflation
was a contributing factor
in one of the most horrific wars in human history
this was hyperinflation in one country
in today's economy hyperinflation is a very real possibility in the near future
for many countries
from the crumbling u.s. economy to the failed euro to the unrest and poverty in asia
governments around the world
are getting desperate
it seems foolhardy to believe that none of these government will respond by
producing mass amounts of devalued currency in an attempt to save
this we lead to a situation much like what we saw in germany
in nineteen twenty three