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Thinking Outside The Box: How A Bankrupt Germany Solved Its Infrastructure Problems

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  • Thinking Outside The Box: How A Bankrupt Germany Solved Its Infrastructure Problems

    Thinking Outside The Box: How A Bankrupt Germany Solved Its Infrastructure Problems by Ellen Brown

    "We were not foolish enough to try to make a currency [backed by] gold of which we had none, but for every mark that was issued we required the equivalent of a mark's worth of work done or goods produced. . . .we laugh at the time our national financiers held the view that the value of a currency is regulated by the gold and securities lying in the vaults of a state bank."

    - Adolf Hitler, quoted in "Hitler's Monetary System," www.rense.com, citing C. C. Veith, Citadels of Chaos (Meador, 1949)
    Guernsey wasn't the only government to solve its infrastructure problems by issuing its own money. (See E. Brown, "Waking Up on a Minnesota Bridge," http://www.webofdebt.com/articles/in...ure-crisis.php, August 4, 2007.) A more notorious model is found in post-World War I Germany. When Hitler came to power, the country was completely, hopelessly broke. The Treaty of Versailles had imposed crushing reparations payments on the German people, who were expected to reimburse the costs of the war for all participants — costs totaling three times the value of all the property in the country. Speculation in the German mark had caused it to plummet, precipitating one of the worst runaway inflations in modern times. At its peak, a wheelbarrow full of 100 billion-mark banknotes could not buy a loaf of bread. The national treasury was empty, and huge numbers of homes and farms had been lost to the banks and speculators. People were living in hovels and starving. Nothing quite like it had ever happened before - the total destruction of the national currency, wiping out people's savings, their businesses, and the economy generally. Making matters worse, at the end of the decade global depression hit. Germany had no choice but to succumb to debt slavery to international lenders.

    Or so it seemed. Hitler and the National Socialists, who came to power in 1933, thwarted the international banking cartel by issuing their own money. In this they took their cue from Abraham Lincoln, who funded the American Civil War with government-issued paper money called "Greenbacks." Hitler began his national credit program by devising a plan of public works. Projects earmarked for funding included flood control, repair of public buildings and private residences, and construction of new buildings, roads, bridges, canals, and port facilities. The projected cost of the various programs was fixed at one billion units of the national currency. One billion non-inflationary bills of exchange, called Labor Treasury Certificates, were then issued against this cost. Millions of people were put to work on these projects, and the workers were paid with the Treasury Certificates. This government-issued money wasn't backed by gold, but it was backed by something of real value. It was essentially a receipt for labor and materials delivered to the government. Hitler said, "for every mark that was issued we required the equivalent of a mark's worth of work done or goods produced." The workers then spent the Certificates on other goods and services, creating more jobs for more people.

    Within two years, the unemployment problem had been solved and the country was back on its feet. It had a solid, stable currency, no debt, and no inflation, at a time when millions of people in the United States and other Western countries were still out of work and living on welfare. Germany even managed to restore foreign trade, although it was denied foreign credit and was faced with an economic boycott abroad. It did this by using a barter system: equipment and commodities were exchanged directly with other countries, circumventing the international banks. This system of direct exchange occurred without debt and without trade deficits. Germany's economic experiment, like Lincoln's, was short-lived; but it left some lasting monuments to its success, including the famous Autobahn, the world's first extensive superhighway.

  • #2
    Re: Thinking Outside The Box: How A Bankrupt Germany Solved Its Infrastructure Proble

    EJ asked me to post:

    The Economic Policies of Hitler

    "By the mid thirties there was also in existence an advanced demonstration of the Keynesian system. This was the economic policy of Adolf Hitler and the Third Reich. It involved large-scale borrowing for public expenditures, and at first this was principally for civilian works - railroads, canals and the Autobahnen. The result was a far more effective attack on unemployment than in any other industrial city. By 1935, German unemployment was minimal. 'Hitler had already found how to cure unemployment before Keynes was finished explaining why it occurred.'(17) In 1936, as prices and wages came under upward pressure, Hitler took the further step of combining an expansive employment policy with comprehensive price controls.

    "The Nazi economic policy, it should be noted, was an ad hoc response to what seemed over-riding circumstance. The unemployment position was desperate. So money was borrowed and people put to work. When rising wages and prices threatened stability, a price ceiling was imposed. Although there had been much discussion of such policy in pre-Hitler Germany, it seems doubtful if it was highly influential. Hitler and his cohorts were not a bookish log. Nevertheless the elimination of unemployment in Germany during the Great Depression without inflation - and with initial reliance on essentially civilian activities - was a signal accomplishment. It has rarely been praised and not much remarked. The notion that Hitler could do no good extends to his economics as it does, more plausibly, to all else."

    "Money: Whence it came, where it went" by John Kenneth Galbraith (First Published 1975), Page 237
    Ed.

    Comment


    • #3
      Re: Thinking Outside The Box: How A Bankrupt Germany Solved Its Infrastructure Proble

      Originally posted by FRED View Post
      EJ asked me to post:

      The Economic Policies of Hitler

      "By the mid thirties there was also in existence an advanced demonstration of the Keynesian system. This was the economic policy of Adolf Hitler and the Third Reich. It involved large-scale borrowing for public expenditures, and at first this was principally for civilian works - railroads, canals and the Autobahnen. The result was a far more effective attack on unemployment than in any other industrial city. By 1935, German unemployment was minimal. 'Hitler had already found how to cure unemployment before Keynes was finished explaining why it occurred.'(17) In 1936, as prices and wages came under upward pressure, Hitler took the further step of combining an expansive employment policy with comprehensive price controls.

      "The Nazi economic policy, it should be noted, was an ad hoc response to what seemed over-riding circumstance. The unemployment position was desperate. So money was borrowed and people put to work. When rising wages and prices threatened stability, a price ceiling was imposed. Although there had been much discussion of such policy in pre-Hitler Germany, it seems doubtful if it was highly influential. Hitler and his cohorts were not a bookish log. Nevertheless the elimination of unemployment in Germany during the Great Depression without inflation - and with initial reliance on essentially civilian activities - was a signal accomplishment. It has rarely been praised and not much remarked. The notion that Hitler could do no good extends to his economics as it does, more plausibly, to all else."

      "Money: Whence it came, where it went" by John Kenneth Galbraith (First Published 1975), Page 237
      I like that preface, Fred, so that we can tell who is behind the thought.
      Jim 69 y/o

      "...Texans...the lowest form of white man there is." Robert Duvall, as Al Sieber, in "Geronimo." (see "Location" for examples.)

      Dedicated to the idea that all people deserve a chance for a healthy productive life. B&M Gates Fdn.

      Good judgement comes from experience; experience comes from bad judgement. Unknown.

      Comment


      • #4
        Re: Thinking Outside The Box: How A Bankrupt Germany Solved Its Infrastructure Proble

        Jim with respect, aren't you possibly being just a shade repetitive regarding Fred identifying himself to your full satisfaction on every post?

        \You've made this point at least a half dozen times here already. Fred must clearly identify himself on all posts - on pain of what? Displeasing Jim Nickerson?

        Maybe he's not free to answer your displeasure other than with continuous courtesy here, due to professional constraints being a moderator/editor?

        You've been around this block three or four or five times already. You've expressed your approval of Fred's compliance with your wishes, that all posts be strictly identified, and I distinctly remember Fred said he was pleased that he has been able to accomodate you in that regard.

        Why are you still belaboring it?

        Seems you are now hammering the issue into the floor until the floorboards are splintered.

        Now you are telling me elsewhere my "credibility is shot" because I don't wish to post my portfolio for you to examine?

        If you were ragging me that much after I'd aready painstakingly complied with your wishes to identify everything to your personal satisfaction I'd offer you a Bronx Cheer.

        Comment


        • #5
          Re: Thinking Outside The Box: How A Bankrupt Germany Solved Its Infrastructure Proble

          Originally posted by Lukester View Post
          Jim with respect, aren't you possibly being just a shade repetitive regarding Fred identifying himself to your full satisfaction on every post?

          \You've made this point at least a half dozen times here already. Fred must clearly identify himself on all posts - on pain of what? Displeasing Jim Nickerson?

          Maybe he's not free to answer your displeasure other than with continuous courtesy here, due to professional constraints being a moderator/editor?

          You've been around this block three or four or five times already. You've expressed your approval of Fred's compliance with your wishes, that all posts be strictly identified, and I distinctly remember Fred said he was pleased that he has been able to accomodate you in that regard.

          Why are you still belaboring it?

          Seems you are now hammering the issue into the floor until the floorboards are splintered.

          Now you are telling me elsewhere my "credibility is shot" because I don't wish to post my portfolio for you to examine?

          If you were ragging me that much after I'd aready painstakingly complied with your wishes to identify everything to your personal satisfaction I'd offer you a Bronx Cheer.

          When anyone puts up anything besides a joke, i.e. that is supposedly serious financial commentary, I for one would like to know whose thought is being represented. A lot of what is put up here is referenced to news items, newsletters, other sites and occasionally referenced to nothing. In the latter instance it would appear to be the opinion of the poster. From reading almost all of the opinions of some posters I, for one, make an assessment about whether the guy or gal appears to know something or is just a bullshitter. The less clarity there is in a post, to me the less value.

          Fred (1,2,3,4) is unique, in that as far as I am concerned he works at iTulip, and as such, I don't expect him to have any opinions that he posts under his name--Fred-- and signed Ed. And yet seeming opinion stuff keeps getting posted by Fred? and I can assume it was under the direction of EJ, but I never know that unless it is stated, so why muddy the waters when it isn't necessary, seems more like laziness than anything else.

          If Fred, any number, has his opinions he would like to express, he ought to get off his ass, get himself another name and post his opinions like everyone else under that name and let the readers decide if that individual ultimately seems to know his ass from his elbow.

          Tonight the post I referenced above by Fred stated "EJ asked me to post"
          was great and I acknowledged that. I hope it continues, Fred (any number).
          Jim 69 y/o

          "...Texans...the lowest form of white man there is." Robert Duvall, as Al Sieber, in "Geronimo." (see "Location" for examples.)

          Dedicated to the idea that all people deserve a chance for a healthy productive life. B&M Gates Fdn.

          Good judgement comes from experience; experience comes from bad judgement. Unknown.

          Comment


          • #6
            Re: Thinking Outside The Box: How A Bankrupt Germany Solved Its Infrastructure Proble

            Originally posted by Jim Nickerson View Post
            I, for one, make an assessment about whether the guy or gal appears to know something ...
            That's just it Jim. You are indeed "I for one" - and your average Joe poster here probably does not need to have you reminding them at their every post, that you are vigilantly serving up "scores" as to whether every last one of their latest comments appeared credible to you.

            What normal human would remain permanently cheerful, to have you constantly putting up a chalk scoreboard (presumably for everyone else's being informed as well regarding your opinion) with numbers one through ten in chalk letters on it "grading" them as to whether their comment has passed the Jim Nickerson "credibility test"?

            If you were "grading" my comments in such fashion repeatedly I'd find it trying, to say the least. It suggests you assume everyone has a burning desire to know what your grade is regarding everything. They don't.

            Comment


            • #7
              Re: Thinking Outside The Box: How A Bankrupt Germany Solved Its Infrastructure Proble

              Originally posted by Jim Nickerson View Post
              When anyone puts up anything besides a joke, i.e. that is supposedly serious financial commentary, I for one would like to know whose thought is being represented. A lot of what is put up here is referenced to news items, newsletters, other sites and occasionally referenced to nothing. In the latter instance it would appear to be the opinion of the poster. From reading almost all of the opinions of some posters I, for one, make an assessment about whether the guy or gal appears to know something or is just a bullshitter. The less clarity there is in a post, to me the less value.

              Fred (1,2,3,4) is unique, in that as far as I am concerned he works at iTulip, and as such, I don't expect him to have any opinions that he posts under his name--Fred-- and signed Ed. And yet seeming opinion stuff keeps getting posted by Fred? and I can assume it was under the direction of EJ, but I never know that unless it is stated, so why muddy the waters when it isn't necessary, seems more like laziness than anything else.

              If Fred, any number, has his opinions he would like to express, he ought to get off his ass, get himself another name and post his opinions like everyone else under that name and let the readers decide if that individual ultimately seems to know his ass from his elbow.

              Tonight the post I referenced above by Fred stated "EJ asked me to post"
              was great and I acknowledged that. I hope it continues, Fred (any number).
              Will do.

              Now here's a point from me FRED the admin noting you and Luke here are squabbling again on another thread about something or other. Now normally this isn't a problem. Most folks here could care less if two members of our community attack each other's credibility and so on once in a while. But it's easy on these anonymous forums for members to insult each other with impunity and it's distracting and annoying to others if they do it a lot. That's the idea behind Rule #1 here at the iTulip Bar and Grille: don't say anything on the forum that you wouldn't say to the other member in person. In fact, that may be the only rule. The other point I'll make is that if two members develop a habit of squabbling we're going to insist as a matter of policy that they either knock it off or get married. So unless you two plan to be the first two iTulip community members of our forum to wed, I suggest you either figure out another way to communicate or take your squabbling off line.

              Thanks.
              Ed.

              Comment


              • #8
                Re: Thinking Outside The Box: How A Bankrupt Germany Solved Its Infrastructure Proble

                FRED - You'll note my comment below (only comment I posted) offered a simple reminder that posting one's portfolio here is considered optional rather than mandatory? According to you that is my contribution to a "squabble"?

                Thank you for advising me of the recommended degree of meekness to be employed in response to such questions FRED.


                Originally posted by Jim Nickerson
                ... Well, Luke ... put up information, why don't you do it in a credible manner. ... cuts down on my time to catch up on what may be worthwhile posts ... So much for your credibility ...
                Originally posted by Lukester
                Jim - I understand there are some people in the iTulip select community who post their portfolios. You'll note I'm not one of them? Last time I checked, that was an still optional around here, without those who opt out being considered liars.
                Last edited by Contemptuous; November 12, 2007, 03:31 AM.

                Comment


                • #9
                  Is Eric following Tim Ferriss's book, outsourcing himself?

                  I want to do the same but at this time I just can't.

                  (I'm just curious, I don't object to multiple Freds helping Eric and posting on his behalf or not)

                  Originally posted by FRED View Post
                  EJ asked me to post:

                  The Economic Policies of Hitler
                  and what does "BART" (not "bart") have to say?
                  Last edited by Spartacus; November 12, 2007, 05:00 PM.

                  Comment


                  • #10
                    Re: Is Eric following Tim Ferriss's book, outsourcing himself?

                    Originally posted by Spartacus View Post
                    I want to do the same but at this time I just can't.

                    (I'm just curious, I don't object to multiple Freds helping Eric and posting on his bahalf or not)
                    As is often the case with iTulip, there is a method to our madness. The need for a FRED role will become more apparent in time, and not only because of personnel changes. Some of the developments in the political economy that we see in the iTulip time perspective, three to fives years out, requires that such a role be developed. If you're still with us in three to five years, the reason why will be as obvious as the fallout of the housing bubble is today to anyone reading iTulip in 2002.

                    Comment


                    • #11
                      Re: Is Eric following Tim Ferriss's book, outsourcing himself?

                      Originally posted by EJ View Post
                      As is often the case with iTulip, there is a method to our madness. The need for a FRED role will become more apparent in time, and not only because of personnel changes. Some of the developments in the political economy that we see in the iTulip time perspective, three to fives years out, requires that such a role be developed. If you're still with us in three to five years, the reason why will be as obvious as the fallout of the housing bubble is today to anyone reading iTulip in 2002.

                      "bart" agrees and hoists one in toast to Fearless Leader and his clarity of view and understanding.
                      http://www.NowAndTheFuture.com

                      Comment


                      • #12
                        Re: Is Eric following Tim Ferriss's book, outsourcing himself?

                        Originally posted by bart View Post
                        "bart" agrees and hoists one in toast to Fearless Leader and his clarity of view and understanding.
                        2nd that motion. but i'm not sure i want to know what the need for a "fred" is.

                        i'm showing 25 threads modified since i was here last night. that's out of control! in a good way. now i dig in...

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