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Hyperinflation greatly hurt the Weimar economy. After WWI, Germany was hugely in debt to pay off its war costs as well as reparations to the Allies. The Weimar Republic came to simply start printing money. As money became rapidly worth less and less, prices rose outrageously while people's income rates stayed the same - for example, a person might earn a pay rate of 500 mark in a month, but the price of a sandwich increases from .25 mark at the beginning of the year to a wheelbarrow full of deutschmarks by year's end. (Please don't go by the exact numbers I used, but that's the basic idea of hyperinflation.) As a result, companies couldn't afford to have so many employees, which led to unemployment, which, along with the ever-present war debts, led to printing more money and hyperinflation continuing. It created an entire vicious cycle. When people start using blocks of paper money as fuel for the fire, you know the economy's bad. In the late 1920s, however, attempts were made to reform the value of the deutschmark.

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Q: How did runway inflation affect the German economy?
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What does the word approach mean?

The runway approach was covered with fog.I didn't know how to approach my teacher about my homework.The approach you take varies in every situation.


How do governments get the money for the goods and services that they provide?

If you Google Video search for "Federal Reserve" you will find that in 1913 the central bank of the USA is privately owned and answers to no one except themselves. Through the years the US Federal debt has grown by the increase in the money supply. The Fed deliberately causes the business economic cycles of up turns and down turns in the economy that result in up and down stock markets, and up and down cycles in the employment rate. The US Federal debt is many trillion of dollars. The interest on that debt is about 1 trillion per year. The amount of individual Federal Income Tax paid is about equal to 1 trillion dollars. So all individual Federal Income Tax just pays the interest per year on the debt, leaving the balance owed at 500 trillion. However, to pay for all government operations, more money is borrowed from the Fed, adding it to the 500 trillion balance owed, and thereby increasing the yearly interest owed per year. The Fed creates money out of nothing. The Fed lends the check book money to the US government who pays the Fed immediately with an IOU of a US Treasury Note. On top of the US T-Bill, interest is owing on this "borrowed" money. If the Fed wants to create an economic boom, they increase the money supply, increase available credit, they buy more US T-Bills putting even more US dollars into circulation, and they lower interest rates. In these conditions there is plenty of money to hire employees, invest in R & D, everyone is well paid, and the stock market climbs, real estate prices rise, and inflation starts to happen, etc. If the Fed wants to create an economic bust / depression, they decrease the money supply, decrease available credit, call in loans, they sell US T-Bills to remove as many US dollars from circulation as possible even from foreign US T-Bill holders, and they increase interest rates. In these conditions business working capital evaporates, the stock market collapses, budgets are slashed, employees are laid off, everyone hunkers down and buys only essential goods and services, business commerce goes way down and more people are laid off, there is downward pressure on prices and deflation starts to happen. Due to the fractional reserve banking system, the effects of the Fed policy are multiplied by the factor of the allowed ratio--possibly 1 to 10. The budget for the US military coincidentally usually matches the Federal income tax on corporations. There is virtually no available tax money left over to buy any new roads, health care, new schools, text books, personal computers for the schools, or maintenance on any of these things, so more new money must all be borrowed at interest from the Fed, a privately owned banking system owned by a few of the big New York City banks and a couple of privately owned European banks. The key shareholders of these banks call the shots of what policies happen, so no one from the US government can order the Fed to do anything that it does not want to do. What do they do with these hundreds of billions or even trillions of dollars flowing into them on a yearly basis? They exert political power to enact laws, start wars, fund CIA, NSA covert operations to destabilize poor countries so that those poor countries borrow money and also become indebted to the bankers, they buy all the influential news papers, TV stations, radio stations so that they can affect public opinions by covering the news in a slanted or deceptive way, they create false flag terrorist attacks against their own people to blame on already terrible foreign terrorists living in the Middle East, pay for US Federal / Presidential election and vote fraud to be carried out, and numerous other things. Both Democrats and Republican parties have been controlled by this group of elite wealthy people upon threat of economic collapse and marshal law--ID check points, monitoring of everyone, indebted servitude. Honest politicians do not get money, nor do they get favorable news coverage, and often have dirty tricks played on them in the polling reports presented during news reports. They warp the gathering and reporting of exit poll results--miraculously accurately predicting election results based on one polling count return per region. Search >invisible ballots< Trading partners with the USA must exchange their currencies with those of the US dollar. Any negative economic impact that the US system has immediately affects on these trading partner neighbors. The trillion dollars flowing into the private US Fed are likely to also enslave the others too. For example, this is how the economic collapse of 2008 spread to countries like Canada whose banking regulations never exposed it to ruin, but never the less the credit crunch spread exactly as though Canada had done so. This was because Canada's domestic banks carried out policies of credit tightening identical to the USA, thereby causing its stock markets and underlying economy to contract similarly to that of the USA. Canadian businesses were denied working capital so the underlying economy was choked by actions taken by the Canadian banks. Many manufacturing plants in Canada have been relocated off-shore in low wage nations. The value of the Canadian dollar is largely based upon its oil exports so that the Canadian dollar fluctuates in step with the price of oil. Like the USA, Canada suffers from budgetary shortfalls for school budgets, roads, development of new electric power generation plants, health care waiting times, bed closures, and other problems similar to USA. TV stations are finding it difficult to get ad revenues and so are considering cancellation of any local TV show productions due to the poor economy for businesses. Each level of government has its own areas of responsibilities. Budgets for the ongoing operations of those areas are estimated and the tax rate is set per household. Some refer to this as the Mil Rate for property tax. Two or three tax bills are issued during the first half of the year, and if any shortfall materializes, tax adjustment bills are sent out to be paid by the property owners. Sometimes budgeted tax monies are siphoned off by higher levels of government in an effort to buy votes in a different jurisdiction. The shortfall must be made up by cuts to services, materials, and staff. Another method is the pay per service method of tax collection. If more services are consumed by a given tax payer, then that tax payer will pay for each service that they consume. For example, whereas a number of Toronto, Ontario, Canada area schools had indoor swimming pools, and indoor skating rinks, almost all other Ontario cities' and towns' schools did not. So Toronto had a surplus of funds to spend on extras like school indoor swimming pools and indoor ice skating rinks, other cities had to cut back vital staff, goods, and services to make up the imposed shortfall. For example, a US town was provided $2 Million to extend the runway of the town's airport so that an executive's Lear Jet could land and take off so that the executive did not have to drive into town and stay at a local hotel while visiting the plant operated by his company. For example, the highway to the Florida keys cost a considerable amount of money to build out to only a few houses owned by wealthy and powerful families. Who are these families? Why would they deserve this special treatment? The budgets that are set at each level of responsibility attempt to account for the monies to be spent in the upcoming year. With less tax money going towards goods and services, the personnel dealing with this shortfall must do more with less money until they too are laid off work. Budgeting often requires many revisions and drafts and require debate by the politicians at that level of responsibility. The folly of unnecessary line items in the budget can hurt required items, causing unnecessary cuts in spending that results in poorer service to the constituents. One year a mayor wanted to buy a yacht as a museum of a family who had done a cruise with it and reported back to the local newspaper about the adventure. Later after the cruise, the wife in that family died of cancer. This museum scheme was completely without merit, yet probably much money was spent in pursuit of this matter. Prior years' budgets / computer models can be used to estimate the new budget. Some levels of government use financial transaction databases to track expenditures and keep their budgets. A hierarchy of financial coding blocks of numbers would identify the responsibility center that was allocating what amount of funds to do what project or purchase. One way to make money is for the police force to write lots of traffic and parking tickets. However, the police force then is not dedicated to fighting crime and adopts poor training and skills towards any investigation and deductive reasoning that are required for more sophisticated criminal behavior. The police may themselves become corrupted committing as much serious crime as anyone else.