{"id":56872,"date":"2021-02-21T20:41:25","date_gmt":"2021-02-22T01:41:25","guid":{"rendered":"https:\/\/olduvai.ca\/?p=56872"},"modified":"2021-02-21T20:50:40","modified_gmt":"2021-02-22T01:50:40","slug":"michael-burry-warns-weimar-hyperinflation-is-coming","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=56872","title":{"rendered":"Michael Burry Warns Weimar Hyperinflation Is Coming"},"content":{"rendered":"
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Michael Burry Warns Weimar Hyperinflation Is Coming<\/a><\/h3>\n<\/header>\n
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Update (1815 ET):\u00a0<\/strong>one day after the Weimar tweetstorm below, and shortly after our article came out, Burry\u00a0tweeted the following<\/a>:<\/p>\n

People say I didn’t warn last time. I did, but no one listened. So I warn this time. And still, no one listens. But I will have proof I warned.<\/em><\/p><\/blockquote>\n

Indeed he will.<\/p>\n

* * *<\/p>\n

One week ago, Bank of America\u00a0hinted at the unthinkable<\/a>: the tsunami of monetary and fiscal stimulus, coupled with the upcoming surge in monetary velocity as the world’s economy emerges from lockdowns, would lead to unprecedented economic overheating… or rather\u00a0precedented as\u00a0<\/em>BofA’s CIO Michael Hartnett reflected back on the post-WW1 Germany which he said was the “most epic, extreme analog of surging velocity and inflation following end of war psychology, pent-up savings, lost confidence in currency & authorities<\/strong>” and specifically the Reichsbank\u2019s monetization of debt, and extrapolated that this is similar to what is going on now.<\/p>\n

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There is, of course, another name for that period: Weimar Germany, and because we all know what happened then, it is understandable why BofA does not want to mention that particular name.<\/p>\n

Of course, others have been less shy – in 1974,\u00a0Jens Parsson wrote a fascinating<\/a>, in-depth historical analysis of the hyperinflationary collapse of Weimar Germany under the original money printer, Rudy von Havenstein, “Dying of Money: Lessons of the Great German and American Inflations<\/a><\/em>” one which we periodically remind readers is absolutely critical reading in preparation for what comes next.<\/p>\n