After Hitler came to power, Germany had money out of thin air? Where does the money come from?

Mondo History Updated on 2024-02-07

Background.

In 1923, Hitler raised his arms and shouted to awaken countless people in need, and he was seen as a savior, and people looked forward to him. At that time, the German people were living in dire straits, and they urgently needed to change the status quo. However, after Hitler came to power, was the problem solved? How did he achieve Germany's miraculous rise? Where does his money come from?

Germany's dilemma.

On November 11, 1918, World War I ended with the defeat of Germany. In desperation, the Treaty of Versailles was signed, and a painful moment followed. The war had exhausted the finances of Britain and France, and they hoped to receive huge reparations from Germany to pay off their debts. For Germany, the Entente's extortionist demands for reparations put him in a desperate situation. During the war, Britain and France, the Entente powers, continued to borrow from the United States, and finally owed more than $4 billion.

When the armistice was signed, the Allies demanded that Germany deliver 5,000 heavy guns, 10,000 machine guns, 2,000 aircraft, and other large quantities of supplies, which almost exhausted Germany's armament resources. In addition, the Henin was ceded and Germany was completely blockaded in other areas. During the armistice negotiations, the Allies threatened not to continue the war for 72 hours. Finally, on November 11, Germany was forced to sign this unjust armistice.

According to the terms of the contract, Germany was required to compensate the victorious country with 132 billion gold marks, which was already half considered. Previously, the Entente had asked for 269 billion gold marks, which is equivalent to 96 tons**. Later, fearing that over-exploitation would lead to the demise of Germany, they relented. This is still an astronomical sum that Germany cannot afford. Germany had no choice but to comply with the arrangement, but could not afford to pay and had to seek a reduction in the amount of compensation.

However, in 1922, France, fearing the resurgence of Germany, was adamantly opposed to reducing the amount of reparations. On May 31, 1921, Germany reluctantly paid its first 1 billion gold marks, and the following year, the cumulative reparations reached 2 billion gold marks, but Germany was too shy to afford more.

The road to Hitler's rise.

Despite the difficult situation, Hitler led Germany out of the difficult situation with extraordinary talent. He implemented austerity policies, developed domestic industry, increased employment opportunities, and strengthened his strength. On the diplomatic front, he sought an alliance with the Soviet Union to create an alliance of "Axis powers". Hitler was committed to reviving the German economy and freeing Germany from the predicament of currency depreciation and inflation.

While tightening his body and propaganda tools, Hitler inflamed popular sentiments and advocated nationalism and anti-Semitism. Through his strong leadership, he succeeded in rallying the strength of the people of the whole country and pushing Germany to victory. Despite the uncertainties of the future, it is undeniable that Hitler was leading Germany in a new direction with his extraordinary talent and decisive decisions.

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