Michael Burry Warns Weimar Hyperinflation Is Coming
The comments below are an edited and abridged synopsis of an article by Tyler Durden
Bank of America has hinted at the unthinkable: A tsunami of monetary and fiscal stimulus, coupled with the upcoming surge in monetary velocity as the world’s economy emerges from lockdowns, would lead to unprecedented economic overheating.
There is another name for that period: Weimar Germany, and because we all know what happened then, it is understandable why BofA does not want to mention it.
Others have been less shy. In 1974, Jens Parsson wrote an in-depth historical analysis of the hyperinflationary collapse of Weimar Germany: Dying of Money: Lessons of the Great German and American Inflations, and this is critical reading in preparation for what comes next.
Then Michael Burry, the man made famous in the hit movie “The Big Short,” picked up on the theme of Weimar Germany and specifically its hyperinflation as the blueprint for what comes next in a lengthy tweetstorm. And while the details are familiar to most monetary historians, the fact is that Burry is calling for Weimar-style hyperinflation in the US. A repost of Burry’s lengthy tweetstorm is reprinted here; it shows how similar our world is to the one just before Germany saw the most explosive hyperinflation in history.