by George Burns
If we look back at history we will learn how in the 1920s the Weimar Republic fell into such financial distress that they encountered run-away inflation. This is a possible outcome from the FED's announcement today that they will launch a third round of Quantitative Easing, known as QE3. That is nothing more than printing more money, as the below article says, out of thin air. When more money is printed both the new money and existing money is worth less making the price of all goods and services more expensive. It has been said that the people of the Weimar republic had to cart around their money in wheelbarrows when they went shopping. Not only was their money worthless, food and other life necessities were scarce commodities largely because their national currency was worthless. Let's hope that is not a fate QE3 will force upon us.
If we look back at history we will learn how in the 1920s the Weimar Republic fell into such financial distress that they encountered run-away inflation. This is a possible outcome from the FED's announcement today that they will launch a third round of Quantitative Easing, known as QE3. That is nothing more than printing more money, as the below article says, out of thin air. When more money is printed both the new money and existing money is worth less making the price of all goods and services more expensive. It has been said that the people of the Weimar republic had to cart around their money in wheelbarrows when they went shopping. Not only was their money worthless, food and other life necessities were scarce commodities largely because their national currency was worthless. Let's hope that is not a fate QE3 will force upon us.
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