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In case a space-alien reads this eons in the future...........general price inflation IS NOT an increase in the money supply. Absolutely no one with any legitimate understanding of economics makes that claim.
To completely gut the dishonest posturing above during fixed money supply eras in The US inflation was seen regularly.
Finally, there are many worldwide examples across the recent past of DECREASING money supplies and general price inflation.
The idea that expansionary money supply = inflation is disinformation.
Certainly QE's support the reality that mo' money does not necessarily incite inflation.
Not all new money is spent.
Many do. And those had other massive externalities that led to hyperinflation. Excessive printing was due to, not the cause of.
May I nominate, The Treaty of Versailles as the mother of all externalities within this context? The French in particular were pizzed and forced and impossible deal.
Aka, the treaty of Versailles had 440 clauses and 414 were dedicated to punishing Germany for Ww1. Almost 1/3 of their deficit was for reparations.
Beat me to the punch good call.
Lifted from, "The Economic Consequences of the Peace" 1919 - John Maynard Keynes - Keynes had been the UK Treasury's chief negotiator in Paris.
“If we aim at the impoverishment of Central Europe, vengeance, I dare say, will not limp. Nothing can then delay for very long the forces of Reaction and the despairing convulsions of Revolution, before which the horrors of the later German war will fade into nothing, and which will destroy, whoever is victor, the civilisation and the progress of our generation.”
*JMK noted that Woodrow Wilson and team were utterly outmaneuvered by Clemenseau. JMK saw the disaster as it unfolded and presented WW with an alternative plan that would have proved much more reasonable than TTV working documents.......WW turned it down flat as he thought congress would object.
*It's important to point out that JMK ran the financial side of The UK's WWI effort masterfully.
Having their Ruhr productivity taken away, and having to pay reparations in gold (non-sovereign currency) killed them.
+1. Germany had no chance.
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