Wednesday, March 6, 2013

Charts 03-06: Weimar moniez

JoAnn fabric/craft stores recently had a good discount on custom framing, so I brought in a pile of Weimar currency for a project I have wanted to do for some time now.

Here's how it turned out.

German hyperinflation through 1923
You can see the full progression in the Papiermarks from 1DM through 500MM DM.  I never did get a 1B DM note, but that's OK.  IIRC, they weren't around for long before they revalued into the Rentenmark at 1B : 1 -- comparable to the FAZ reverse splits over the last few years.

Of course, hyperinflation in the America doesn't have to come from outright printing.  All we need is for the CBs of the world to reject the dollar and Treasuries as a store of value, and exit them for physical goods all at once.  The "printing" has already happened -- the dollars are out there, all around the world, from eighty years of credit expansion.

Today looked like A and B of a wave 4.  We would need a steep drop early tomorrow to reach the .382 retrace at the channel wall; maybe it will meander instead.  

Remain concerned about the technically-critical 1551 level just overhead.

SPX 03-06
Small change on the McClellan oscillator today.  Maybe we can get a few more of these to build pressure in the tanks, despite the recovery-in-progress.

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