Tuesday, July 13, 2010

Obscure book by British adviser becomes cult hit after Warren Buffett tip

Update (7/15): Apparently the article below was way off base and Mr. Buffett never recommended the book or said what the article says he said, although I still think the 2 books (and the "When Money Dies" article) below could be interesting: http://www.cnbc.com/id/38243922


Thanks to Matt for first passing this along.

Mr Buffett, known as the Sage of Omaha because of his shrewd investments, apparently told friends that When Money Dies illustrated what could happen today if European governments attempt to spend their way out of the downturn.

Written in 1975 by Adam Fergusson, a one-time adviser to Tory minister Lord Howe, the book charts how the German economy was ruined by hyperinflation after the Weimar government allowed public spending to run out of control.

The collapse of the Weimar Republic cleared the way for Adolf Hitler’s Nazis to seize power in 1933.

After Mr Buffett tipped off a Dutch financier friend about the wisdom of Fergusson's analysis, his book became the talk of right-wing blogs and economics websites, with copies changing hands for up to £1,600.

Old Street Publishing, a small British publisher, has rushed out a new edition to meet demand.


Book: When Money Dies: The Nightmare of the Weimar Hyper-inflation

Related article (Feb. 2009): “When Money Dies

Related book: The Economics Of Inflation - A Study Of Currency Depreciation In Post War Germany