Now Available from Vending Machines… Gold

In yet another sign of the times, a German company has introduced vending machines in airports and train stations that dispense gold in lieu of the traditional soda and snacks. Even more telling is that the vending machines have received quite a positive response. What do the Germans know that we don’t? Mainly the dangers of inflation and what can happen to a currency run amok.

It seems to be one of those cases where the lack of a history of failure has inured Americans to the dangers of pushing their currency too far. After all, one would think that the logical place to put such a machine would be right here in the good old US of A where the government is running close to a two trillion dollar yearly deficit and the central bank is directly monetizing a portion of this debt. This is the logical place to put a gold vending machine, but there are none to be found in the United States- well, at least, not yet. Chalk it up to cultural differences. The hyperinflation of the Weimar Republic happened in Germany, whereas the dollar has never had any similar episode. The closest we ever came was the inflation of the 1970s, and that seems to be but a distant memory. Continue reading Now Available from Vending Machines… Gold