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Dying of Money by Jens O Parsson

Dying of Money - Lessons of the Great German and American Inflations

Dying of Money - Jens O. Parsson's Most Insightful Quote

Everyone loves an early inflation. The effects at the beginning of an inflation are all good. There is steepened money expansion, rising government spending, increased government budget deficits, booming stock markets, and spectacular general prosperity, all in the midst of temporarily stable prices. Everyone benefits, and no one pays. That is the early part of the cycle. In the later inflation, on the other hand, the effects are all bad. The government may steadily increase the money inflation in order to stave off the later effects, but the later effects patiently wait. In the terminal inflation, there is faltering prosperity, tightness of money, falling stock markets, rising taxes, still larger government deficits, and still roaring money expansion, now accompanied by soaring prices and ineffectiveness of all traditional remedies. Everyone pays and no one benefits. That is the full cycle of every inflation.

About Dying of Money

In "Dying of Money - Lessons of the Great German and American Inflations", Jens O. Parsson performs the neat trick of transforming the dry economic subject of inflation into a white-knuckles kind of blood-chiller. He begins with a freewheeling account of the spectacular inflation that all but destroyed Germany in 1923, taking it apart to find out both what made it tick and what made it finally end.

Jens O. Parsson goes on to look at the American inflation that was steadily gaining force after 1962. In terms clear and fascinating enough for any layman, but with technical validity enough for any economist, he applies the lessons gleaned from the German inflation to find that too much about the American inflation was the same, lacking only the inexorable further deterioration that time would bring.

The book concludes by charting out all the possible future prognoses for the American inflation, none easy but some much less catastrophic than others.

Jens O. Parsson brings much new light to bear on this subject. He lays on the line in tough, spare language exactly how and why the American inflation was caused, exactly who was responsible for causing it, exactly who unjustly benefited and who suffered from the inflation, exactly why the government could not permit the inflation to stop or even to cease growing worse, exactly who was going to pay the ultimate price, and exactly what would have to be done to avert the ultimate conclusion.

"Dying of Money - Lessons of the Great German and American Inflations" packs a wallop. It is not for the timid and it spares no tender sensibilities. The conclusions it reaches are shocking and are bound to provoke endless dispute. If they proved to approximate even remotely the correct analysis of the American inflation, hardly any American citizen could escape being the prey of the inflation and no one could afford not to know the inflation was taking him. In the economic daily lives of everyone, nothing will be the same after this book as it was before.

Dying of Money Quotes

I have studied Dying of Money very closely in recent years and I used numerous quotes in WhichWayGold's "Strategy 2" lessons. These are all set out in the bibliography. Here are a couple of others I liked...

"Most of us have at least a general idea of what we think inflation is. Inflation is the state of affairs in which prices go up. Inflation is an old, old story. Inflation is almost as ancient as money is, and money is almost as ancient as man himself".

"Scarcely a person in America was untouched by inflation's handiwork. Every citizen, in his daily life and with his earthly fortune, danced to a tune he mostly could not hear, played for him by the government's inflation. It was up to every citizen to learn for himself what was happening and to look out for himself if anyone was going to, because no one else was looking out for him. The government certainly was not. The government was compelled by its other duties not to protect him but the opposite, to continue to steal from him by the inflation as long as it could. The forces at work were such that there was no practical possibility the inflation would end or abate. The only real question was whether or not it would continue to become steadily worse. A hundred million Americans or more, almost all of them serenely unwitting, lived their lives and made their homes on inflation's epicenter. They were on ground zero for inflation's shock waves. Only time would tell whether the tremors rumbling beneath their feet would pass off without a quake".

Much like When Money Dies - The Nightmare of the Weimar Collapse, by Adam Fergusson, this book is pretty difficult to find but is worth the time and money.

Dying of Money Book by Jens O Parsson Dying of Money on Amazon