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

An obscure book about the collapse of the German economy in the 1920s has become cult reading among leading financiers, after a tip from billionaire investor Warren Buffett.

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.

Fergusson, who worked for Lord Howe in the Foreign Office from 1984 to 1989, said that he hoped the renewed popularity of his work would bolster the case for swift budget cuts and fiscal conservatism.

His book emphasises how hyperinflation affected the lives of ordinary German people, not just the political and business elites.

The 78-year-old said: "In Britain today there is this debate between neo-Keynesians who want to postpone any tightening of the economy and those who say it should be done at once.

"To my mind it is a nondebate, because politically now is the only time tightening can be done. In a year or so it won't be possible, politically, any more.

"When governments are not strong or brave enough politically, finally the economy goes to pieces anyway.”

Mr Buffet has amassed a fortune estimated at £30 billion.

The financier to whom he recommended the book has not been identified, but claims to have bought hundreds of copies to send to the Dutch government and the European Central Bank.

http://www.telegraph.co.uk/finance/financetopics/recession/7883931/Obscure-book-by-British-adviser-becomes-cult-hit-after-Warren-Buffett-tip.html

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

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

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