Wednesday, April 26, 2006

Wiemar, Germany Gold and Silver Prices

German Mark prices of Silver and Gold from January 1919 to November 1923:

Jan. 1919 Silver 12 Gold 170
May. 1919 Silver 17 Gold 267
Sept. 1919 Silver 31 Gold 499

Jan. 1920 Silver 84 Gold 1,340
May 1920 Silver 60 Gold 966

Sept. 1921 Silver 80 Gold 2,175

Jan. 1922 Silver 249 Gold 3,976
May. 1922 Silver 375 Gold 6,012
Sept. 1922 Silver 1899 Gold 30,381

Jan. 1923 Silver 23,277 Gold 372,447
May. 1923 Silver 44,397 Gold 710,355
June 5, 1923 Silver 80,953 Gold 1,295,256
July 3, 1923 Silver 207,239 Gold 3,315,831
Aug. 7, 1923 Silver 4,273,874 Gold 68,382,000
Sept. 4, 1923 Silver 16,839,937 Gold 269,429,000
Oct. 2, 1923 Silver 414,484,000 Gold 6,631,749,000
Oct. 9, 1923 Silver 1,554,309,000 Gold 24,868,950,000
Oct. 16, 1923 Silver 5,319,567,000 Gold 84,969,072,000
Oct. 23, 1923 Silver 7,253,460,000 Gold 1,160,552,662,000
Oct. 30, 1923 Silver 8,419,200,000 Gold 1,347,070,000,000
Nov. 5, 1923 Silver 54,375,000,000 Gold 8,700,000,000,000
Nov. 13, 1923 Silver 108,750,000,000 Gold 17,400,000,000,000
Nov. 30, 1923 Silver 543,750,000,000 Gold 87,000,000,000,000

These numbers are from an article at Le Metropole Cafe

The huge payoff, protection that gold and silver provided as real money for those that had the forsight to make sure they acquired substantial amounts back when silver and gold were cheap occurred during 1923.

This is what can happen when a government fiat token is not tied in any way to something (like an amount of gold and silver) that restrains a government from creating at will as many tokens as it wants to. No wonder the US's Federal Reserve bank, the creator of US Dollar tokens, is illegal, unconstitutional.

And now America has Bernanke at the head of the Fed:

"Like gold, U.S. dollars have value only to the extent that they are strictly limited in supply. But the U.S. government has a technology, called a printing press (or, today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at essentially no cost. By increasing the number of U.S. dollars in circulation, or even by credibly threatening to do so, the U.S. government can also reduce the value of a dollar in terms of goods and services, which is equivalent to raising the prices in dollars of those goods and services. We conclude that, under a paper-money system, a determined government can always generate higher spending and hence positive inflation." - Ben Bernanke remarks before the National Economists Club, Washington, D.C. November 21, 2002

"Those who create and issue money and credit direct the policies of government and hold in the hollow of their hands the destiny of the people." - Rt. Hon. Reginald McKenna, Chancellor of Exchequer, England

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