Monday , 14 October 2024

A Perspective On the World’s Most Famous Hyperinflation Event (+4K Views)

The Great War ended on November 11th, 1918, when the signed armistice came into effect, but the peace agreement lead to additional destruction – the destruction of wealth and savings – in the form of an hyperinflation event in Germany from 1921 and 1924 that caused millions of people to have their savings erased.

[The original infographic, as posted by Jeff Desjardins (money.visualcapitalist.com), is presented here by the editorial team of munKNEE.com (Your Key to Making Money!) in a slightly edited ([ ]) and/or abridged (…) format to provide a fast and easy read.]

 

Courtesy of: The Money Project which aims to use intuitive visualizations to explore ideas around the very concept of money itself. Founded in 2015 by Visual Capitalist and Texas Precious Metals, the Money Project will look at the evolving nature of money, and will try to answer the difficult questions that prevent us from truly understanding the role that money plays in finance, investments, and accumulating wealth.

Just two calendar years after the end of the war, the Papiermark was worth 10% of its original value. By the end of 1923, it took 1 trillion Papiermarks to buy a single Goldmark. All cash savings had lost their value, and the prudent German middle class savers were inexplicably punished.

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