Peter Young @petermiyoung Twitter profile

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Peter Young

@petermiyoung

3 years

Arrived in El Salvador ahead of the #adopt21 conference and payed for my breakfast in bitcoin. Transaction fee less than one cent over the Lightning Network. Bitcoin accepted at every business I’ve visited so far. It’s really happening here!

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Peter Young

@petermiyoung

3 years

President Bukele just announced that a new #Bitcoin City will be built in El Salvador. Bitcoin will be legal tender. There will be 0% income, capital gains and property tax. A 10% VAT will serve as a key source of city revenue. The city will be financed by a “bitcoin bond”.

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Peter Young

@petermiyoung

3 years

Day 4 in El Salvador. Meal purchased in bitcoin via a @bluewalletio to @chivowallet Lightning transfer. Bill $21.75/32,564 sats. Lightning transaction fee $0.06/98 sats. Transaction fee with Lightning 0.3% vs ~2.5% over Visa. And Lightning fees will only come down from here.

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Peter Young

@petermiyoung

4 years

In 1997, "The Sovereign Individual" made predictions about the ways in which the internet will radically alter society. Many of those predictions, including the rise of "cybercash", are playing out before our eyes. This illustrated thread summarises the book in 12 Tweets.👇

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Peter Young

@petermiyoung

4 years

Weimar Germany's hyperinflation provides perhaps the most dramatic example of the destruction that ensues when money dies. This 16 tweet thread summarizes Adam Fergusson's definitive account, and explores the lessons we can learn from this dark period in German history.

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Peter Young

@petermiyoung

4 years

The insights of the Austrian School of Economics will prove invaluable to investors navigating the distorted global economy of 2021. This 18-tweet thread walks you through the definitive guide "Austrian School for Investors" by @scholarium_at , @RonStoeferle and @MarkValek .👇

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Peter Young

@petermiyoung

3 years

Day 7 in El Salvador. Travelled to centro histórico to see how #bitcoin is being used in the old market. Most trade is taking place in USD but many businesses now accept bitcoin as well. Photos show “Accepting Bitcoin” signs appearing on store fronts.

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Peter Young

@petermiyoung

3 years

Arthur C. Clarke predicts the internet in 1964.

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Peter Young

@petermiyoung

4 years

The manufacture of collectables by pre-historic humans was the first step on the road to creating money. @NickSzabo4 's epic essay "Shelling Out" describes how and why this happened. This illustrated thread summarises Nick's 12,000 words in 12 Tweets.👇

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Peter Young

@petermiyoung

3 years

How are Salvadorans pricing things in #bitcoin when its purchasing power fluctuates? Prices are quoted in USD, and BTC payments are taken using a live exchange rate calculated by the merchant wallet. Some merchants are already quoting exchange rates at the counter.

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Peter Young

@petermiyoung

4 years

Once you translate the "central bank speak" into plain English, Agustín Carsten's message is clear and alarming. Central Bank Digital Currencies will remove the anonymity of cash transcations and grant authorities "absolute control" over money. Watch the <1 min video below.👇

In Gold We Trust

@IGWTreport

4 years

10/ As we move into a period of inflation, Russell predicts that financial repression and central planning by governments will increase. Measures will include the introduction of Central Bank Digital Currencies, which will grant authorities "absolute control" (see👇) over money.

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Peter Young

@petermiyoung

3 years

In 2020, I quit my job so that I could devote my time to supporting two ideas that are changing the world. They are: 1. #bitcoin 2. Free Private Cities Now they both have a whitepaper. Read the newly published @freeprivatecity whitepaper via the link in the tweet below.

Free Cities Foundation

@freecitiesfound

3 years

We’re pleased to announce the publication of our Free Private Cities whitepaper. It outlines the concept of FPCs, makes the moral case for them, and addresses some common objections— all in 12 pages. Please retweet to help us share this far and wide.

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Peter Young

@petermiyoung

3 years

70% of Salvadorians don’t have a bank account, but there are 1.5 smart phones per person. Bitcoin Lightning transfers are accessible to anyone with a smart phone. This $2 transaction for bottled drinks was settled via a @bluewalletio to @chivowallet Lightning transfer.

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Peter Young

@petermiyoung

2 years

Unsure this was a fair trade…

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Peter Young

@petermiyoung

2 years

In three days, @freecitiesfound ambassador @ThorupMikkel will be hosting an online summit exploring practical ways for attendees to prepare for economic uncertainty. Excited to see @RonPaul on the speaker list. Follow the link to get your free ticket:

Expat Money Summit 2022

Securing Your New Life Abroad

2022.expatmoneysummit.com

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Peter Young

@petermiyoung

4 years

Between 2015 and 2017 a battle took place within the Bitcoin community. On the surface it was about the amount of data allowed in each Bitcoin block. But it exposed a divide that ran much deeper, and revealed important truths about who ultimately controls the Bitcoin protocol👇

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Peter Young

@petermiyoung

4 years

#Bitcoin

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Peter Young

@petermiyoung

4 years

Under conditions of inflation, people are forced to "invest" in order to preserve the purchasing power of their savings. If a project generates a 1% nominal return every year, but the inflation rate is 2%, then its activities consume capital, rather than produce it. 1/3

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Peter Young

@petermiyoung

4 years

Can anyone name a country that hasn’t become considerably more socialist in the last ten years?

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Peter Young

@petermiyoung

4 years

Whether it's "Merkle tree", "UTXO", "hashing" or "mempool", the language bitcoiners use can appear daunting to newcomers. In this collaborative thread, @anilsaidso and I walk you through the jargon. Here are our top ten technical terms every bitcoiner needs to know.👇

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Peter Young

@petermiyoung

3 years

Dining out at Bitcoin Embassy Bar in Mexico City this evening. 🇲🇽 @bitcoinemb

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Peter Young

@petermiyoung

4 years

Inflation is not an act of God or a disease that comes like the plague. It is a deliberate policy that forms part of the standard operating procedure of @thefiatstandard . Luckily, #BitcoinFixesThis by offering us an alternative. 3/3

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Peter Young

@petermiyoung

4 years

Sustained inflation is not a naturally occuring phenomenon. It is a policy.

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Peter Young

@petermiyoung

4 years

There is often an overlooked tax story at the heart of humanity’s defining events. @DominicFrisby 's book Daylight Robbery provides a fascinating account of the ways in which tax has shaped our past, and will change our future. This 15 tweet thread explains.👇

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Peter Young

@petermiyoung

4 years

In "A Masterclass in Economic Calculation" @michael_saylor talks to @PrestonPysh about inflation and why he expects more companies to put bitcoin on their balance sheet. This 6 tweet thread summarizes Michael's argument. Check out the full episode here:

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Peter Young

@petermiyoung

3 years

Many believe that there are 4 economic schools: Keynesian, Monetarist, Marxist & Austrian. In reality there are only 2: the logically coherent and the logically incoherent. Austrians provide the only coherent explanation of economic phenomena. There is no coherent alternative.

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Peter Young

@petermiyoung

4 years

13/ Central banks today pursue inflation as a deliberate policy. Although less overt when kept low, inflation remains a clandestine way of siphoning resources from the productive economy. Its Cantillon Effects are the real cause of inequality commonly blamed on free markets.

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Peter Young

@petermiyoung

4 years

1/ In Bitcoin is Hope @Breedlove22 writes: “Entropy is uncertainty, randomness, and disorder; it naturally pours forth from reality, and destroys the works of man over time” His words reminded me of a vivid example of entropy's destructive power I encountered in Russia.👇

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Peter Young

@petermiyoung

2 years

Interesting fact about the @mises Institute. It is home to Murray Rothbard’s book collection, complete with his margin annotations. Want to know what Rothbard thought about a particular work of economics? You can find out in Auburn (provided you can decipher the handwriting).

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Peter Young

@petermiyoung

4 years

1/ The roots of the Austrian School can be traced back to its founder Carl Menger, whose 1871 book Principles of Economics provided a new foundation for economic theory and solved the age-old "Paradox of Value". From Menger's work we can derive 4 pillars of Austrian Investing.

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Peter Young

@petermiyoung

4 years

For those who believe in managed attempts to bring about price stablity, I recommend chapter 6 of America's Great Depression by Rothbard. It outlines Fed Chair Benjamin Strong's attempts to stabilize prices during the 1920s, and how this helped bring about The Great Depression.

Christine Lagarde

@Lagarde

4 years

In my interview with @IgnatiusPost , I explained that price stability and climate change are closely related. Consequently, we must take climate-related risks into account in our central banking activities.

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Peter Young

@petermiyoung

3 years

@chivowallet have set up a stand in the market. Their staff are doing outreach work with local community, showing them how to use the wallet.

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Peter Young

@petermiyoung

4 years

The delusion that governments can successfully manipulate prices has spanned cultures, nations and epochs. Inspired by Scheuttinger & @eamonnbutler 's excellent book "Forty Centuries of Wage & Price Controls", I have catalogued my top 8 historical price control blunders.👇

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Peter Young

@petermiyoung

3 years

You know you’ve probably spent too much time talking about the Austrian School when your phone’s predictive text starts changing the word “hope” to “Hoppe”. #AustrianEconomicsProblems

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Peter Young

@petermiyoung

4 years

"An increase in the supply of money or credit will no more increase the stock of productive assets in an economy than an increase in printed football stadium tickets will increase the capacity of the stadium itself." @thefiatstandard , chapter 6

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Peter Young

@petermiyoung

3 years

How is #Bitcoin scaling? For the past few weeks, I’ve been working with @nwoodfine and the @Blockstream team on the creation of this explainer on the differences between the Liquid Network and the Lightning Network as a layer-2 solutions. Check out the summary thread below.👇

Liquid Network 🌊

@Liquid_BTC

3 years

How is Bitcoin scaling? Our new article compares two different, but complementary, layer-2 solutions for Bitcoin: the Lightning Network and the Liquid Network. Here's a brief summary of their differences👇🧵

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Peter Young

@petermiyoung

3 years

What's the best resource for introducing a non-technical beginner to #bitcoin in under an hour? Answers could include articles, YouTube videos, podcast episodes or other media.

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Peter Young

@petermiyoung

3 years

“Financialization has been so errantly normalized that the lines between saving (not taking risk) and investing (taking risk) have become blurred to the extent that most people think of the two activities as being one and the same.” — @parkeralewis

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Peter Young

@petermiyoung

4 years

"Monetary crank" is a term we need to bring back into popular usage.

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Peter Young

@petermiyoung

4 years

6/ Germany had continuously printed unbacked paper marks since 1914. But prices hadn’t responded in a linear way. Germans failed to comprehend the monetary expansion. Prices rose and fell in fits and starts. Inflation manifested itself gradually, then suddenly.

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Peter Young

@petermiyoung

3 years

What’s the most underrated #Bitcoin account you follow on Twitter?

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Peter Young

@petermiyoung

4 years

12/ We are in the early stages of a social transition. Transitions are turbulent, but new technological forces will support longer-term human flourishing and limit the role of coercion in human exchange. Those who understand this will be best placed to adapt to the new reality.

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Peter Young

@petermiyoung

4 years

9/ The result was monumental human tragedy. Inflation destroyed German savings and with them the fabric of society. Cantillon Effects redistributed wealth in seemingly arbitrary ways. Debtors received windfalls while creditors, savers and fixed-income earners were wiped out.

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Peter Young

@petermiyoung

4 years

16/ As this happens, many are opting for traditional safe havens. But a growing number are choosing an emerging digital alternative to the legacy fiat system: bitcoin. Its fixed supply and censorship-resistance make it a strong decentralized alternative to central banking.

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Peter Young

@petermiyoung

3 years

Our supplies of natural resources are not finite in any economic sense. Counterintuitively, as economies develop and we consume more, resources tend to become more available to us. In this clip Julian Simon explains why the only ultimately scarce resource is human time.👇

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Peter Young

@petermiyoung

4 years

Fiat money is a compulsory implementation of debt-based centralized ledger technology. It monopolizes financial and monetary services worldwide. It was born out of governments' need to manage the de facto default on their gold obligations. - @thefiatstandard , Ch. 3

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Peter Young

@petermiyoung

4 years

@PerBylund “The natural condition of man is extreme poverty and insecurity. It is romantic nonsense to lament the passing of the happy days of primitive barbarism.” - Ludwig von @Mises

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Peter Young

@petermiyoung

4 years

2/ 1: The Subjective Theory of Value recognises that value is not determined by any inherent property of a good, nor by the amount of labor necessary to produce it, but by the importance an acting individual places on it for the achievement of their desired ends.

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Peter Young

@petermiyoung

4 years

"Although economic theory does not dictate political ideology, understanding economic scarcity and subjectively valuing peace and civilization will naturally incline a person to adopting a libertarian outlook." Principles of Economics, Chapter 5 by @saifedean

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Peter Young

@petermiyoung

4 years

To understand economic phenomena we must analyse human action, rather than material objects and their properties. Inanimate objects are dead matter. It is human reason shaping humans’ actions that rearranges matter and gives it value, meaning, and purpose. 1/8

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Peter Young

@petermiyoung

4 years

10/ This intervention leads to the periodic booms and busts that are definitive of modern economies. For investors looking to make sense of this phenomenon, Austrian Business Cycle Theory (ABCT) provides an explanation. @BobMurphyEcon explains👇

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Peter Young

@petermiyoung

4 years

10/ The combination of these factors will diminish the revenue generation power of governments. Rather than treating their citizens and resident companies like state assets, they will be forced to treat mobile “Sovereign Individuals" and businesses more like valued customers.

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Peter Young

@petermiyoung

3 years

In preparation for @LynAldenContact 's appearance on The Bitcoin Standard podcast this week I've been reading her article "3 Reasons I'm Investing in Bitcoin", written in July 2020. Here are three key passages that stood out for me. 1/ On Bitcoin's monetary properties👇

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Peter Young

@petermiyoung

4 years

3/ But the internet, with its ability to transfer information seamlessly across the world, stands to reverse this trend. People employed in the information economy will be freed from the “Tyranny of Place”, becoming increasingly able to operate from any jurisdiction they like.

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Peter Young

@petermiyoung

4 years

5/ 4: Causal Realism entails basing economic explanations on the notion of cause and effect grounded in human action. Austrians reject posited functional relationships between abstract statistical constructions such as CPI, GDP or unemployment. @saifedean explains👇

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Peter Young

@petermiyoung

4 years

1/ During WWI, European powers suspended the gold convertibility of their currencies, issued bonds and printed new bills, as a means of financing their war efforts. With varying degrees of severity, each introduced price controls in a misguided attempt to suppress inflation.

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Peter Young

@petermiyoung

4 years

Society's wealth will nonetheless flow into these capital-consuming projects since, for savers, losing purchasing power at 1% per year is preferable to losing it at 2%. Through this process scarce resources are misdirected and wealth is gradually drained away. 2/3

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Peter Young

@petermiyoung

4 years

1/ Humans have passed through three societal epochs: 1. Hunter-Gatherer Society 2. Agricultural Society 3. Industrial Society Now, looming over the horizon, is something entirely new, a fourth age characterised by the rise of the microprocessor: Information Society.

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Peter Young

@petermiyoung

4 years

12/ Modern advanced economies are unlikely to experience hyperinflation. But examining Weimar Germany brings into focus the ways in which inflation subverts the social order. The difference between today's "low and stable" inflation and hyperinflation is one of degree, not kind

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Peter Young

@petermiyoung

4 years

15/ Whilst timings are notoriously hard to predict, understanding the character of cycles is key to protecting investments. Metrics such as the Misesian Stationarity Index (Tobin's Q) and Rothbard-Salerno True Money Supply can help us gauge where we are in the cycle.

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Peter Young

@petermiyoung

4 years

10/ Poverty grew and, along with it, a widespread feeling that those with wealth had acquired it illegitimately. Amongst the poor, theft became common. Others resorted to graft, fraud and bribery. The traditional virtues of thrift, honesty and hard work lost their appeal.

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Peter Young

@petermiyoung

4 years

5/ In late 1921, prices began to rise rapidly. But rather than demand a stable purchasing power for the marks they had, Germans demanded more marks to buy what they needed. They failed to see that high prices were a causal manifestation of the ballooning supply of currency.

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Peter Young

@petermiyoung

4 years

9/ New monetary competition will undermine governments’ ability to expropriate wealth through inflation. Digital money will return control of the medium of exchange to the owners of wealth, who wish to preserve it, rather than to nation states that wish to spirit it away.

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Peter Young

@petermiyoung

4 years

6/ Cybercash will become the dominant medium of exchange for high value transactions. Its existence is made possible by a mathematical truth: that it is trivial to multiply prime numbers into a larger product, but almost impossible to unravel a product into its simple primes.

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Peter Young

@petermiyoung

4 years

15/ In 2020 government debt reached unprecedented levels. As debt grows it puts upward pressure on inflation. Higher interest rates would be necessary to control it, but even modest rises could trigger a crisis that may result in the creation of an entirely new financial order.

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Peter Young

@petermiyoung

4 years

5/ This changing business environment will reduce governments' power to tax income and capital. Their power of compulsion over money will also weaken. The rise of digital currencies will cause monetary control to migrate from the halls of power to the global marketplace.

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Peter Young

@petermiyoung

4 years

11/ This is not to say that states will disappear. They will still provide services like defense and infrastructure. However, increasing competition between states will make it harder for them to charge more in taxes than their services are worth to their residents.

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Peter Young

@petermiyoung

4 years

8/ By 1923, 30 paper mills and 2000 printing presses were adding perpetually to the blizzard of banknotes under which the German economy had already been consumed. At the end of that year it took 1,000,000,000,000 marks to buy 1 British shilling.

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Peter Young

@petermiyoung

3 years

Merchants in San Salvador are using two main wallets to receive bitcoin: @chivowallet and @IBEX_Mercado . Chivo (the government wallet) is more common. The Ibex experience is better for outside wallet payments. Pictures show a @bluewalletio to @IBEX_Mercado transaction.

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Peter Young

@petermiyoung

4 years

Carl Menger was the founder of the Austrian School of Economics. For those looking to find out more I recommend "Why Menger Matters" by @jeffdeist and @jtsale : You can download Principles of Economics for free at @mises .org:

Principles of Economics

It was this book that kicked-off the Marginalist Revolution, which corrected theoretical errors of the old classical school. These errors concerned value theory, and they had sown enough confusion to...

mises.org

Peter Young

@petermiyoung

4 years

1/ The roots of the Austrian School can be traced back to its founder Carl Menger, whose 1871 book Principles of Economics provided a new foundation for economic theory and solved the age-old "Paradox of Value". From Menger's work we can derive 4 pillars of Austrian Investing.

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Peter Young

@petermiyoung

4 years

@dergigi The “system” Bret is describing above is simply the free market. There is no need to craft some special system to ensure people are rewarded for “contributing to collective wellbeing”. Under free market conditions the only way to succeed & acquire wealth is to serve others.

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@petermiyoung

4 years

14/ Since early and late-stage production cannot be stimulated simultaneously, economic dislocation results. It reveals itself in a recession: a “cluster of errors" where investors discover the resources needed to complete projects are insufficient. @CaitlinLong_ explains👇

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Peter Young

@petermiyoung

4 years

@jordanbpeterson @jordanbpeterson if you haven’t already, I’d recommend reading Ludwig von Mises’ magnum opus Human Action. It is the most foundational and text of the Austrian School and reading it would set you up well for the interview you’re planning.

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Peter Young

@petermiyoung

4 years

Two thousand years ago three wise men visited Jesus. The first gave frankincense The second gave myrrh The third (and wisest) gave a non-inflatable alternative to fiat currency. Let’s make 2021 the year where we follow his example.

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Peter Young

@petermiyoung

4 years

14/ In the past year global money supply growth has accelerated while output has fallen. US dollar supply has grown 25%. This new money likely won’t lead to a sudden CPI rise, but its redistributive effects will manifest themselves in complex ways through the financial sector.

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Peter Young

@petermiyoung

4 years

Thank you for reading. This thread was produced by @TheAustrian3 as a partnership with "Austrian" investment firm Incrementum. If you enjoyed, please retweet to help its message reach a wider audience. You can find out more about Incrementum here:

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Peter Young

@petermiyoung

4 years

7/ The mathematical asymmetry of prime numbers underlies the design of public key-private key encryption technologies. These technologies will support the architecture of digital money, making it almost impossible to counterfeit, and making monetary receipts verifiably unique.

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Peter Young

@petermiyoung

3 years

The biggest problems of our time result from people minunderstanding economics. We need more people like @saifedean who are brave enough to challenge the economic theories espoused by the powerful. Consider supporting the publication of his new book via Kickstarter.👇

Saifedean Ammous

@saifedean

3 years

I have just finished writing my next book, The Fiat Standard! Support my Kickstarter to get the first draft now & the physical, digital, and audio copies by December!!

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@petermiyoung

4 years

8/ This poses a further challenge for governments given that inflation of national currencies serves as a major source of their revenue. The invention of cybercash will allow any individual or firm to easily shift out of any fiat currency that appears in danger of depreciation.

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Peter Young

@petermiyoung

3 years

This week @real_vijay will appear as a guest on @saifedean 's The #Bitcoin Standard Podcast. Vijay's article, The Bullish Case for Bitcoin, is a great read for newcomers looking to understand the economic and historical context of bitcoin's rise. My summary thread is below👇

Peter Young

@petermiyoung

4 years

Today’s recommended read is The Bullish Case for Bitcoin by @real_vijay . His excellent article outlines the history of money's emergence, #bitcoin 's core properties, and the path we should expect it to follow as it transitions to becoming global money. My summary is below.👇

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Peter Young

@petermiyoung

4 years

7/ Inflation has become a defining aspect of our modern financial system. But it wasn't always this way. Prior to WWI, Britain's Consumer Price Index was falling. Between 1800 and 1900, at a time of unprecedented industrial progress, the £'s purchasing power rose by 30%.👇

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Peter Young

@petermiyoung

4 years

3/ The German currency was heavily debased through printing of unbacked paper marks. Before the war, the British shilling, French franc, Italian lira and German mark were worth about the same. By the end of 1918, the mark had lost ~75% of its exchange value against each.

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Peter Young

@petermiyoung

4 years

9/ In a free market, interest rates play an important role in coordinating economic activity. They help society find the right balance between consumption and investment. But investors today live in a world where rates are heavily distorted by central bank intervention.

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Peter Young

@petermiyoung

4 years

7/ Scarcity is key to understanding the relationship between consumption, investment and economic growth. Given that resources are finite at any given time, if we want to increase investment and thereby increase the rate of growth, we need first to reduce present consumption.

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Peter Young

@petermiyoung

4 years

13/ It leads to: >overinvestment in unprofitable projects as entrepreneurs are misled about the state of the economy. (We call these projects "malinvestments") >overconsumption of consumer goods (and stimulation of late-stage production) due to decreased incentives to save.

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Peter Young

@petermiyoung

3 years

An insight from @FossGregfoss 's appearance on The Bitcoin Standard podcast yesterday: "Bitcoin represents default insurance on fiat credit. If the insurance on your house falls in price by 20%, you don't go out and sell your insurance. It may make sense to acquire more."

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Peter Young

@petermiyoung

4 years

2/ During the industrial era, in order to realise economies of scale, populations clustered around large factories. Production clustering made it easier for governments to increase taxes on those operating within their territory, allowing the state to grow in size and power.

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Peter Young

@petermiyoung

4 years

4/ At the same time, businesses will be able to draw on a global pool of talent, contracting flexibly across multiple continents. With employees around the world and agile operations in cyberspace, the value businesses create will be less subject to government capture.

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Peter Young

@petermiyoung

4 years

Thanks to @saifedean for hosting me for this discussion on North Korea. Based on insights gained from 9 visits to the country since 2014, I provide my take on how its economy functions in reality. We touch on money, property rights, the black market and #Bitcoin . Link below 👇

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Peter Young

@petermiyoung

4 years

8/ "Capital" is another concept important for understanding economic growth. Unlike Keynesians, Austrians recognise that a nation's capital is a structure made up of distinct goods tailored to specific production stages. Capital isn't amorphous, nor is it the same as "money".

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Peter Young

@petermiyoung

4 years

11/ In a free market, greater saving leads to a natural fall in interest rates, since more resources have been set aside for production. For entrepreneurs, low interest rates are a signal that sufficient resources have been made available to undertake projects profitably.

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Peter Young

@petermiyoung

4 years

2/ German price controls were the most stringently enforced in Europe. At the same time, international isolation forced the government to rely heavily on inflationary domestic bond issuance for their financing. Economic ruin served as a contributing factor to Germany's defeat.

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Peter Young

@petermiyoung

4 years

3/ 2: The Law of Diminishing Marginal Utility recognises that as more units of a homogenous good are acquired, the utility derived from each additional unit declines. This wide-ranging insight helps explain important economic phenomena such as the historical emergence of money.

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Peter Young

@petermiyoung

4 years

17/ The recent rise of digital currencies like bitcoin has garnered intense interest from Austrians. There are risks around its development, but Austrian theory suggests that bitcoin's attributes make it well suited to grow in use as a store of value. @MarkValek explains👇

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Peter Young

@petermiyoung

4 years

12/ But when central banks manipulate interest rates the crucial coordinating function they play is broken. Authorities typically intervene to lower interest rates below their natural level by lending new money into existence. This sends conflicting signals to the market.

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Peter Young

@petermiyoung

4 years

4/ But Germany’s inflation didn't end there. The post-war Weimar government had to deal with: >Treaty of Versailles reparations >Revolutions, uprisings and strikes >And later, French occupation of the Rhur Mounting expenditures normalized financing via the printing press.

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Peter Young

@petermiyoung

4 years

7/ In 1923, French occupation of the Rhur led to full hyperinflation. Germany lost this rich region’s industrial output, and the gvt spent $10bn a day paying workers to passively resist. Tax revenues dropped to <10% of expenditures, and the gap was filled by printing money.

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Peter Young

@petermiyoung

4 years

11/ Finally, toward the end of 1923 a new currency called the Rentenmark was introduced with a much scarcer supply. The old paper mark was allowed to inflate into oblivion. When it died, it left behind a deep and damaging legacy. Germany would never be the same again.

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