Germans carried cartloads of currency notes to buy a loaf of bread after First World War, why? Hyperinflation!

-
Germany had fought the First World war largely on loans and had to pay war  reparations  in gold. This  depleted  gold reserves at a time resources were scarce. In 1923 Germany refused to pay, and the French occupied its leading industrial area, Ruhr, to claim their coal. Germany retaliated with passive resistance and printed paper currency recklessly. With too much  printed money in circulation, the value of the German mark fell. In April the US dollar was equal to 24,000 marks, in July 353,000 marks, in August 4,621,000 marks  and  at 98,860,000 marks by December, the figure had run into trillions. 


single bread costs 4.6million in Germany during 1923


As the value of the mark collapsed, prices of goods soared. The image of Germans carrying cartloads of currency notes to buy a loaf of bread was widely publicised evoking worldwide sympathy. This crisis came to be known as hyperinflation, a situation when prices rise phenomenally high.

Eventually, the Americans intervened and bailed Germany out of the crisis by introducing the Dawes Plan, which reworked the terms of reparation to ease the financial burden on Germans.

Comments

Post a Comment

Popular posts from this blog

The Israel palestine conflict

-
Image
  The Israel-Palestine conflict is a deeply rooted and complex geopolitical issue that has persisted for decades, with its origins dating back to the late 19th century. At its core, the conflict revolves around competing national narratives, historical grievances, and territorial claims, making it a deeply emotional and contentious issue for both Israelis and Palestinians. The roots of the conflict can be traced to the late 1800s when Zionist movements emerged, advocating for the establishment of a Jewish homeland in Palestine. The Balfour Declaration in 1917, issued by the British government, expressed support for the establishment of a "national home for the Jewish people" in Palestine. This declaration, coupled with the British mandate over Palestine, sowed the seeds for future tensions. In 1947, the United Nations proposed the partition of Palestine into separate Jewish and Arab states, with Jerusalem as an international city. The Jewish leadership accepted th...
Read more

Nationalism in Europe, Dream of Democratic and social republic in 18th century

-
Image
    The Dream of Worldwide Democratic and Social Republics – The Pact Between Nations,  a  print prepared by Frédéric Sorrieu,  1848. During the 18th the people of the European countries were not happy with the monarchism. so people in the European countries started overthrowing the monarchy and eventually democracy was introduced to the world. This democracy forged through different struggles. here we are going to study some important struggles. before going into history we need to understand some of the important terms like: 1.Liberty: The state of being free within society from oppressive restrictions imposed by authority on one's way of life, behavior, or political views 2.Nationalism: Identification with one's own nation and support for its interests, especially to the exclusion or detriment of the interests of other nations. 3.Fraternity: A group of people sharing a common profession or interests. the people wanted a liberal nation wher...
Read more

Political Radicalism in the Weimar Republic Germany

-
Image
The birth of the Weimar Republic coincided with the revolutionary uprising of the Spartacist League on the pattern of the Bolshevik Revolution in Russia. Soviets of workers and sailors were established in many cities. The political atmosphere in Berlin was charged with demands for Soviet-style governance.  this is a rally organised by the radical group known as the Spartacist League. In the winter of 1918-1919 the streets of Berlin were taken over by the people. Political demonstrations became common. Those opposed to this  such as the socialists, Democrats and Catholics  met in Weimar to give shape to the democratic republic. The Weimar Republic crushed the uprising with the help of a war veterans organisation called Free Corps .  The  anguished Spartacists later founded  the Communist Party of Germany.  Communists and Socialists henceforth became irreconcilable enemies and could not make common cause against Hitler.  Both revolutiona...
Read more