'..the early Weimar period of 1919-22, when the Reichsbank was financing about 50% of the government’s expenditure compared to about 25% of expenditure in the United States today.'<blockquote>'Bernanke’s problem is that the mix of gigantic deficits, interest rates below the rate of inflation and gigantic central bank purchases of government bonds is precisely that of the Weimar regime. Admittedly the Reichsbank by October 1923 was financing 99.9% of government spending and we haven’t got to that yet. Still the budget deficit represents more than 40% of government spending and during the QEII period the central bank is financing about 70% of the government deficit. That’s pretty close to the early Weimar period of 1919-22, when the Reichsbank was financing about 50% of the government’s expenditure compared to about 25% of expenditure in the United States today.'
- Martin Hutchinson,
How Bernanke May Become von Havenstein, March 21, 2011</blockquote>
'Bernanke makes another fundamental error by blaming higher commodity prices on faster global growth.'<blockquote>'Bernanke's recent testimony before Congress, in which he argued that the Fed can't be blamed for rising commodity prices, will surely increase international unease. Yet still, as the issuer of the world's reserve currency, the Fed is blazing a trail that other central banks feel compelled to follow. It is no coincidence that inflation is highest in those nations that maintain a peg against the dollar. But making this fundamental connection is beyond the ability of our statistician-in-chief.
Bernanke makes another fundamental error by blaming higher commodity prices on faster global growth. Growing economies produce more stuff, which keeps prices in check. However, if money supply grows faster than production, prices rise. So, the increased demand to which Bernanke refers is merely a function of more money, not faster growth.'
- Peter Schiff,
A Little Understanding Goes a Long Way March 10, 2011</blockquote>
Context:
'The mounting debt burden of the world’s most developed nations .. is unsustainable..'