Friday, April 12, 2013

Rise of Hitler

During the time after World War One Germany was in a very bad condition. Money was stained to pay the 132 one thousand million marks of reparation, this caused inflation. Then non long after that, when the french invaded Ruhr, the Weimar nation printed more cash to pay civilians to go on strike, after all the massive money making the German currency had increased by 400%, this then caused a hyperinflation. The unemployment level was high as a result of trying to lower the inflation; goods were being less available; money doesnt have any value any more; the simplest emotional state essential items costs obscurely high; tribes life savings can only afford a loaf of bread. This caused line of works because people can be easily starved to death from not having enough money to buy food, and life essential items be hard to get too. Once there is a problem the government will try to fix it, so the Weimar Republic later on will develop a parvenu type of currency, called the Reichsmark, to use. This problem cannot be avoided, because the Weimar Government needed to print this money, they already lost a war they dont trust to assume more money from people, eventually they did borrow 9 gazillion and 800 million dollars from USA though the Dawes plan and others from the USA for create infrastructure with the help of Gustav Stresemann (the German Foreign Minister).

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Because the government was not willing to borrow money in the beginning they went into deeper and deeper debt as shown below:

Year         Revenue         Expenses         Deficit*

1919         2,559         8,560         5,999

1920         3,178         9,329         6,054

1921         2,927         6,651         3,676

1922         1,488         3,951         2,442

1923*         519         5,278         4,690

*In millions of gold mark.

**April to October only.

Note: 1,000,000,000,000 paper mark equals 1 gold mark

Thats not all the...

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