Below are references to 2 sources on Germany's Weimar hyperinflation.

1. This chart shows the “hockey-stick” onset of hyperinflation including the brief deflation that preceeded it. The author explains that velocity of money (more than the printing of money) causes hyperinflation.

2. The Weimar Equity Market. Jim Sinclair is one of the greats. Don't be fooled by his frequently-turgid/elliptical/allusive prose. Note his emphasis on the significance of the uptick rule! If you click through, you find, among other things that “the actual economy, as reflected in both the stock market valued in dollars and the copper price, peaked well before the actual hyperinflation was over in November 1923”.

-Fred Chase

I.

Chart: German marks needed to purchase an ounce of gold.

The chart is embedded within How Deflation Creates Hyperinflation by Eric deCarbonnel

II.

Posted: Feb 08 2009     By: Jim Sinclair      Post Edited: February 9, 2009 at 12:09 am

Dear Friends,

Of all the charts concerning the Weimar Experience, one needs your clear understanding as it may seem to be a great contradiction. That chart is of the Weimar Equity Market during a period that could be similar in many ways to that which is coming in the future of the US dollar.

Should the uptick rule be reinstated internationally and forcefully applied in Canada (the front door of naked short sellers to the world) as the US dollar meets its fundamental destiny, then equities could put on and out do the 1930 rally before a total collapse (as occurred in the Weimar Equity Market experience).

Respectfully yours,
Jim

Click chart for more…