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To: C19fan
This crippling debt was the origin of the inflation,
the rise of Hitler and ultimately the cause of WWII in Europe.

2 posted on 09/28/2010 6:53:40 AM PDT by Uri’el-2012 (Psalm 119:174 I long for Your salvation, YHvH, Your law is my delight.)
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To: UriÂ’el-2012

Interesting coincidence....I just happen to buy a 1923 Weimar Republic 5 million mark note on eBay yesterday to collect as an example of past historical instances of hyperinflation. Something I think we’ll unfortunately get to experience first hand with the American dollar in the not too distant future.


4 posted on 09/28/2010 6:59:30 AM PDT by OB1kNOb (When the righteous are in authority, the people rejoice; When a wicked man rules, the people groan.)
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To: UriÂ’el-2012
This crippling debt was the origin of the inflation

The debt was not "crippling" and was quite payable without undue stress on the German economy.

The amount was much less per annum that the German government had been paying to support its military establishment.

Since the Treaty of Versailles had reduced the German military to a small fraction of its previous size, it was basically a matter of shifting expenses to reparation payments from munitions.

The reparations were payable in kind - in coal, timber, iron, etc. - so the program actually boosted employment.

What spurred the hyper-inflation is this: German Chancellor Cuno deliberately failed to deliver timber and coal to France in a timely fashion because his government was frustrated by the cavalier attitude shown by the French toward Germany.

Rather than negotiate with Germany, French Prime Minister Poincare declared this maneuver a full default and invoked the Treaty to send in an occupying French force into Germany's Ruhr region.

French industry had become dependent upon German deliveries and Germany knew this.

Humiliated by the French occupation and the failure of the other powers to convince France to negotiate, the German central bank began to print money for payment of debt rather than send commodities, in a deliberate policy of trying to slow down French industrial production and impair France's economy.

It spiraled out of control from there.

18 posted on 09/28/2010 7:11:42 AM PDT by wideawake
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