[slowhandluke]

So, printing lots of money should not have caused inflation in the Weimar Republic?

Or there wasn't any inflation in the 1980s in the US?

Inflation happens, and extra money floating around has something to do with it.

[Southack]

Aye. Printing money has *something* to do with it, but printing money doesn’t have *everything* to do with it.

The equation is: Money Supply = cash + credit.

Beck and Schiff don’t know the 2nd half of that equation. They only know the “cash” part. This causes them to think that printing money to fund FDR’s massive Social Security, war spending, and Works Progress Adminstration (WPA) somehow caused “inflation” or Weimar-like “hyper-inflation” back when the U.S. experienced record **DEflation** during the Great Depression.

Which is to say, Beck and Schiff are ignorant of credit-based economies.

If they knew that 20% of all U.S. banks failed in the Depression, and that the destruction of available credit was greater than the amount of cash being printed for FDR’s massive socialism, then they would appear more educated and would be able to make better analysis.

Don’t be like them.