Tuesday, 24 June 2014

Hyperinflation

The WW1 winners took away a part of Germany's territories with 3/4 of its iron ore reserves. 
German was suppose to pay $33 billion of reparations. 
Germany plunged into chaos of inflation. (1 US$ cost 4200000000000 Deutsch Marks)
Foods were paid with bags of money.
That was the time when Adolf Hitler came in and urged Germany to switch to Dictatorship to save the country economy. 
German authorities conducted a monetary reform in 1923, which made the economy of the country grow

The frequent change of government in the country makes the hyperinflation even worst.
Adolf Hitler became the fifth chancellor on January 30, 1933. 
Everyone hopes that Adolf Hitler would stay at power for a couple of months

Hjalmar Horace Greeley Schacht is a legendary person.
He chaired Germany’s Reichsbank in 1923, conducted successful reforms, stopped the hyperinflation and attracted loans from the United States.
He became known as the savior of the nation.
Schacht resigned in 1930 and became an official spokesman for Morgan, a renowned banker linked with Rockefeller and Rothschild.
Schacht did a lot to help German Nazis and Hitler rise to power.

It was obviously easy for Hitler to destroy his political rivals.
However, it was a lot harder to retrieve the paralyzed economy of the country with 68,000 bankrupt enterprises and a huge army of the unemployed.

Fuhrer(leader) issued the law about the reduction of unemployment in June of 1933.
Over two million people started building autobahns, railways and channels.
The government was reducing taxes for the companies that were expanding their investment activities and contributing to the growth of employment. 
The unemployment rate was halved in a year and was completely liquidated in 1936.

The nation extricated from the crisis in the heavy industry in 1935.
The Fuhrer was getting ready for war.
Schacht did his best to fund the defense industry of Germany.
He used a parallel currency – Mefo bills – to cover a half of all expenses to rearm the German army.

Germany pulled out from the League of Nations.
Germany officially announced its plan to concentrate fully on the defense industry within four years.
Germany was controlling all of its imports strictly.
The nation launched enterprises to produce synthetic rubber and fuel made of local coal since there were no oil reserves in the country.
Over 250,000 people were involved in the aircraft-building industry.
On September 1, 1939 marks the start of a new World War with the German invasion of Poland.







-Links-

1 comment:

  1. It can be improved better if there were some videos and less word count - 7 wonders

    ReplyDelete