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5 sats \ 6 replies \ @bitcoingraffiti 4 Jul \ parent \ on: Mefo bills -- Hitler's yield farming stablecoin bitcoin
But as an investor in these MeFo's, wouldn't you feel totally scammed once they pushed the maturity dates? I mean how many of those MeFo's were redeemed? If you only get 4%, you're gonna have to wait 25 years to merely gain the principal back. I mean what was the redeem rate? Ten years later the German empire was busted. Sounds like you should have better kept your Rentenmarks.
The MeFos could be redeemed at any time for Reichmarks.
As they paid more than any other similar liquid asset people did not generally want to redeem.
The German government pushed back the automatic redemption dates because people where happy to continue holding- until they weren't.
Certainly once the German expansion project was in retreat, then demand would presumably have evaporated, but for quite a while the prospects looked good....until they didn't!
Like USTs, with MeFos, you are/were investing in the success, or otherwise, of the empire that issued them. It's all good, until it isn't...
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The German government pushed back the automatic redemption dates because people where happy to continue holding- until they weren't.
I highly doubt this. You have a source on this? If I was a bond holder I'd be extremely concerned if not outright infuriated if the maturity date on my bond wasn't met. This would rugpull the entire market. I'd say the time 'they weren't' was the time the maturity was first postponed.
How would you feel if you made such an investment and they'd announce the postponement? I'd immediately know it was a scam from that point on.
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You have a source on this?
'The company's "Mefo bills" served as bills of exchange, convertible into Reichsmark upon request.'
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I just read off the AI that the shortest duration was 5 years and they basically forced the creditors over into long maturity government bonds at lower rates. So in 1939 the first mefos came due and Schacht got fired and replaced by a more compliant nazi.
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You need to be innovative, bold, sly and lucky to get off the centuries old noose of Jewish debt slavery...
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'The company's "Mefo bills" served as bills of exchange, convertible into Reichsmark upon request.'
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