What would you do if your money became worthless?

by Mary Logan

I am working on a policy post, but it is still cooking. So I will instead post a link to the best description of hyperinflation in Weimar Germany that I have ever read, that was written in 1970 when we went off the gold standard for good. Forty-three years later, our currency sins are finally beginning to catch up with us. What will penance for currency abuse look like? Since I have never received an answer to the question, “what would you do if your money becomes worthless,” I’ll ask it again.  Dead silence on this topic implies big blind spots.

Bezemer & Hudson, 2012 http://michael-hudson.com/2012/09/incorporating-the-rentier-sectors-into-a-financial-model-3/
Bezemer & Hudson, 2012 http://michael-hudson.com/2012/09/incorporating-the-rentier-sectors-into-a-financial-model-3/

While inflation in most countries is still manageable, the rate of inflation is increasing. That means that the amount of money relative to the underlying worth of the economy is expanding, through expansion of debt and money printing. Currently the debt in wealthy countries is mostly sequestered in the financial iron triangle loop, with little escaping into general circulation except where corporate salaries and graft trickle down to wealthy managers. At some point the sequestration will end, and the trickle down will turn into a rush. The jockeying that we are seeing now between countries attempting to balance their devaluation with the devaluation in other countries will become a race, and inflation will increase. How will our inflation race play out, and how will it be different from the description of the German Nightmare linked here? Another longer descriptions of the process is linked here. Might we segue into a new currency without pain and defaults for too-big-to-fail entities? Can we escape hyperinflation, given our bankrupt political processes?

wheremymoneywent

Header: Slave Market with Disappearing Bust of Voltaire, Salvador Dalí, 1940; Dalí describes his work on the painting “to make the abnormal look normal and the normal look abnormal.” While Dalí apparently disagreed with Voltaire’s philosophies, Voltaire had several relevant quotes on money that may apply here; “Dont think money does everything or you are going to end up doing everything for money” and “Paper money eventually returns to its intrinsic value — zero.”