When conflict broke out in 1914, the German Central Bank (Reichsbank), suspended redeemability of its notes in gold. Following that there was no legal maximum as to how many notes it could print of thin air (like the U.S. government is doing now). Not wanting to upset people with heavy taxes, the government borrowed large amounts of money which was to be paid by the enemy after Germany had saw victory in the war. Alot of this borrowing was discounted and monetized by the German Central Bank and this amounted to printing money. In modern terminology it is called "quantitative easing".
Toward the end of the war the floating debt of the Reichsbank had jumped from 3 billion to 55 billion marks! The move towards inflation and then hyperinflation was set in stone. There are no longer many people around who had this personal experience, but it is stamped deep in the psyche of the German race and needs to be awaken in the American public.
On that note, the annual Precious Metals Conference of the London Bullion Market Association will be held in Berlin later in 2010. Wilfried Held, managing director of Fachvereinigung Edmettale, the German Precious Metals Association, said one big subject for discussion would be "the high uncertainty about the future of the euro caused through discussions about potential sovereign defaults and the related role of gold".
For Germany, the most powerful country in the EU, the problems have not gone away, they have done what the US politicians are doing and that is simply sweeping then under the carpet! They are hoping against hope to get their economies back on track. Lots of luck with that...!!!!
It is worth remembering that a wheel barrow load of marks would not have bought an ounce of gold during those years of hyperinflation in the 1920s. Those who already had a few ounces in their back pockets were the ones who survived.