Source: https://www.bbc.co.uk/bitesize/guides/znxdnrd/revision/2
Not the post war German miracle, the between wars German miracle. I have always wondered how Germany after being beaten, humiliated, made to pay incredible reparations, the whole country practically destroyed, was able to make a come back less than twenty years later, and with a world wide recession also occurring in those years. Their currency was worth nothing, they were not even able to get loans, so how did they do it?
Now as an apart, I find it funny that right leaning people say that the National Socialists (Nazis) were socialists, and for a proof you have the name, while left leaning people say the name means nothing and that were actually right wing Fascists. No one wants to be associated with them. I have read a lot of books about this and most of them come to the conclusion that there was no miracle, it was a mirage, and the German economy was always in terrible shape.
This is fine, but according to what I have read unemployment was at a minimum and they definitely grew an army, an immense army that took on most of Europe and beat them up for a couple of years. they only started losing when they took on the USSR. So they did have money and lots of it, in order to become the war machine they became.
My question has always been, where did this money come from? As far as I know Germany has never been self sufficient in food and its natural resources are not huge. So where did the money come from? I think that if a deep state does exist it must have been behind this rising of Germany. Remember this second World War actually re shaped the Earth. We were divided into several blocks, and some went on to become the rich nations while others wallow in their misery.
Perhaps we don't need to look at who pulls the strings now, we should look at who pulled the strings then and the people who are pulling them now will come into plain sight. I don't usually write about things like this, but the way things are developing have me worried, maybe I am just trying to get rid of these worries. Sorry if what I wrote is not to your liking.
As I understand the Nazi's financed their war build up with a collection of promissory notes that the Nazi's planned to pay off from plunder during the war.
It was debt financing pushed to an extreme.
A similar thing happens when corporate raiders borrow huge amounts of money to finance leveraged buyouts.
A leveraged buyouts produce a spat of economic activity. It might even turn a few people into billionaires.
The corporate take overs generally leave the take over target stagnated.
Steemit experienced a corporate raid when Justin Sun acquired the platform in a leverage buyout.
There was a short spat of economic activity then stagnation.
The Nazi's promissory notes were based on war financing. The debt financing produced a huge amount of activity but it was financing a friggin' war. The promissory notes were to be repaid in theft and destruction.
While the financial system created a boom (a bubble in military build up) it led to stagnation and debt.
It was not a good financial system.
There are many examples of this type of financing. Spain became the strongest country on earth as it financed the conquest of South America. The boom was short lived.
The British had a company called the "South Sea Company" with a monopoly on trade. The government manufactured a short financial boom as the company sought economic dominion abroad. It burst in the South Sea Bubble.
This method of finance produces bubbles that are doomed to devolve into busts.
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Good points (although I think mentioning cryptocurrencies in the same breath is a bit far-fetched).
Also, many Jewish Germans were businessmen, some in leading positions in the financial sector. There were many wealthy Jewish citizens.
What indescribably terrible things happened to these people even before (!) the start of the Second World War in 1939 is well known. Who do you think confiscated the financial resources and valuable belongings of these people who were killed in an indescribably cruel way, the victims of the Holocaust? Directly and unabashedly.
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Fair enough, but who bought these promissory notes? Not Germans certainly, they had no money.
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The promissory notes were exchanged among the businesses building the war machine.
It was a little bit like crypto. The promissory notes were essentially a ledger maintained by the war machine used the finance the war machine.
I suspect that they were planning on setting out with the plunder that would come from the war.
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I still don't get it, you say they were gambling on money to be received. So what did they buy raw materials or pay wages with? Money did have to come from somewhere, and to me it means the German war machine was financed with outside money. I am no expert on this but that is what it seems to me.
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Where does the value of Bitcoin come from?
BTC is an open ledger for a cryptocurrency. There is no treasury or real estate to back the currency. BTC is simply a ledger of transactions.
People are willing to engage in cryptocurrency because they trust the ledger.
Pre-war Germany was a in a terrible situation. The fiat currency was devalued. Industry had more faith in the promissory notes than they had in the currency.
The notes were still creating a bubble economy which probably hastened Germany's march to war.
There have been thousands of currency bubbles in history. It is foolish to call any of them miracles.
Most bubble economies suffer a bust after the boom.
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chriddi, moecki and/or the-gorilla
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