Monday, June 01, 2009Hyperinflation in Germany, 1920-23. In the end, American bankers led by J.P. Morgan negotiated the Dawes Plan, which put the German economy under an American (WASP, not Jewish) economic "czar," with wide policy-making authority. The Dawes Plan also cued the entrance of General Electric, Du Pont, and the other major American corporations into Germany. They set up advanced industry, electrification projects and even primitive computerization in office buildings.
During the hyperinflation, speculators bought up stores with 1 U.S. dollar. Germany became the brothel of the world, with every imaginable form of prostitution available (children, mother-daughter teams, amputees). All classes were wiped out. Currency became continuously more worthless by the minute, until finally it took 100 trillion marks to buy a single U.S. dollar.
At that zenith, the "inflation consensus" in Germany called it quits and turned to J.P. Morgan for a solution. The Dawes Plan scrapped the old German currency and set a new one on a foundation of real estate assets, which were stable despite the hyperinflation.
Posted by Penn @ 10:22 PM | |