Wednesday, September 29, 2010

Rudolf von Havenstein: "The Most Influential Person in History You've Never Heard Of "

From ZeroHedge via Mangans [Adventures in Reaction]:

The man is Rudolf von Havenstein, the German central banker who brought about the Weimar hyperinflation of the early 1920s, also known as "der Geld Marschall".

I believe that there are a couple of important lessons from the story of von Havenstein. One comes from the fact that the man was a patriot and an aristocrat, i.e. he always thought that he had his country's best interest at heart. Despite that, he created one of the biggest economic firestorms ever to hit a civilized country. Admittedly, he faced some very tough choices, with Communists and Rightists battling in the streets, unemployment at record highs, industrial production plummeting, and Germany owing a huge war debt to the victors of WW1.

The second lesson from his story is the difficulty in ceasing to print money once it has already begun. It's frying pan or fire, take your pick.

Any resemblance to our current situation is purely coincidental....
Follow the Havenstein link, or the yellow brick road (if that's where your heart takes you).