Thom Incorrect about Weimar Inflation, a couple of points. First, the reparations were denominated in Gold Marks, that is a set amount of physical gold, as well as other commodities- lumber, for one. Inflating the mark after the agreement did not change the required, physical quantities of materials set out in the treaty. Second, the Weimar had a Privately Owned Central Bank (Like the US FED) controlling the currency, which was inflating it in defense of shorting in the markets. The "Weimar Inflation" is one of the mainstays of Private Banking Myth that Government cannot be trusted to control the currency, thus a private institution is required. The amazing thing to me is that while everyone "knows" about the Weimar Inflation, who thinks about "How did Germany go from being bankrupt to becoming an economic powerhouse capable of challenging the world in less than a decade?" Hitler took over the Reichsbank, and financed the rebuilding of Germany with Labor Treasury Certificates issued by the government, the same way Lincoln won the Civil war with Greenbacks. No debt, no interest, and it circulates indefinitely, not like unsustainable debt based money which leaves the economy when the debt is paid or defaults. If Government can issue the Treasury Certificates for which Federal Reserve Notes are traded, why not just issue the notes directly? If you understand Fractional Reserve Banking, then you understand that much of the money in the system is based largely on the reserves of the Federal Debt deposited in Private Banks. Pay down that debt and you reduce the banks reserves and the amount of credit they can issue. To educate yourself see Stephen Zarlenga's book "The Lost Science of Money"; Ellen Brown's book "Web of Debt", and online videos "Money as Debt" and "The Money Masters". Real change will be difficult without monetary reform restoring the issuing of currency to the People, in their representative the Government.