The Rise of the Third Reich

Although he is not very popular now - after the economic boom came, the Nazi Party's market became relatively depressed - Hitler still shook hands with every supporter very enthusiastically before joining Hessmann and Chloe. A brand new red Mercedes Benz 6 car. Then we walked away along Berlin's wide and clean roads.

In another time and space, in 1928, due to the massive flow of funds from Germany to the United States, Germany had already fallen into the Great Depression in advance. In fact, it was severe deflation, which was caused by Germany's loss of monetary sovereignty.

However, in the current time and space, because the Keynesian Plan was implemented instead of the Dawes Plan, German funds have not yet begun to flow to the United States, so the prosperity continues.

However, as Hitler said, Germany is still the target of cruel foreign exploitation! The reason why prosperity can still be maintained is because international capital has not yet begun to "shear its sheep." Once they start to withdraw, the German economy will collapse immediately... Because although Germany has a very strong industry, its monetary foundation is still fragile and is based on the pound standard. The status of the pound itself has also been facing severe tests in recent years.

"Britain's gold exchange system is about to fail. Now funds are flowing crazily from London to New York. Britain is encountering an unprecedented crisis." As Hessmann spoke, he looked out the car window at the increasingly prosperous streets of Berlin.

Berlin before World War II was very beautiful, grand and neat, without British slums or overly ornate like Paris. The people living in this city are very hardworking and capable. As long as they have a chance, they will create an era of prosperity and progress.

The prosperity that began in 1924 is also inseparable from the hard work and diligence of the German people. Germany's production is indeed growing. Therefore, the current prosperity is not all "false". In fact, it is not even a surplus - although the phenomenon of "blind investment" in German industry has been serious in recent years, most factories have updated equipment and increased production capacity. However, the output of coal is only slightly more than that of 1913, and the output of crude steel has not exceeded 1913 (certainly much better than in history). Although many cars, airplanes, motorcycles, tractors, and consumer goods such as cameras, radios, washing machines, and refrigerators have been produced, the consumer goods market is still far from saturation. The vast majority of European households do not even have a single household appliance.

In fact, historically, the Great Depression that began in the late 1920s was caused by the inability to maintain the gold standard of currency. The essence of the Great Depression was a super deflation. According to the Bolsheviks, it was caused by the inability of the wages of the working class to purchase the products they produced. But this problem was not solved in the following decades, but such a severe Great Depression never happened again. The reason is that after the Great Depression in the 1920s and 1930s, all countries abandoned the gold standard and could use money printing machines to create demand.

Adolf Hitler said with some frustration: "The French collapsed before 1927, and now it is Britain's turn. Germany will be the next target. If this continues, the Jews will win, and the Aryan nation of Europe will be finished!"

He gritted his teeth, "But the German people are still addicted to false prosperity and are just waiting for their doom!"

The French also experienced a currency collapse crisis that was less severe than Germany's from 1923 to 1926. The apparent cause was the Ruhr crisis—because of the passive resistance of the Germans, the Ruhr crisis also had a heavy blow to the French economy. The strike strained French coal supplies and disrupted transport on the Rhine and rail lines to the East. Moreover, the prospect of France invading Germany also caused international funds to withdraw from France.

The withdrawal of international funds certainly did not take the form of the franc, because the franc lost its status as a hard currency after the world war. Therefore, France's gold foreign exchange reserves decreased rapidly after the Ruhr crisis broke out. The French central bank quickly lost its ability to resist and had to allow the franc to plummet.

But what the French did not expect was that after the Ruhr issue was resolved, the escaped funds did not return to France, but went to Germany! The reason is said to be that the Keynesian Plan and Soviet orders made international capital optimistic about the German economy, but Hessmann and Hitler did not think so.

"The currency war is still going on!" Hessman nodded. "The franc is unwilling to surrender. It is neither willing to invest in gold exchange nor to establish a gold standard with the help of the United States. Naturally, it can only choose to depreciate significantly. This can at least increase The export competitiveness of French domestic industries has led to an improvement in the French economy.

In addition to the contribution of Soviet orders, our current prosperity in Germany is due to the surrender of the mark to the pound. With the support of the UK, our products can be sold smoothly across Europe. As the price of surrender, the gold and foreign exchange proceeds from the sales will flow to the United Kingdom, and all we get are the Bank of England's certificates of deposit placed in the vaults of the Imperial Bank. However, this arrangement has allowed our production capacity to recover rapidly in the past few years.

But even if the pound has our support, it seems that it still has no ability to defeat the US dollar... because the UK's strength is far behind that of the United States after all, and the UK owes too much debt to the United States. They made a mistake during the world war and owed dollars instead of pounds. Moreover, the excessively high pound pricing has also hurt British industrial production. This makes it impossible for the British to achieve a surplus with the United States even if they receive our compensation. Therefore, in this currency war, Britain cannot win by peaceful means. "

Germany has developed so well in recent years, which is inseparable from the protection of Britain. The main reason why the British sheltered Germany, turned a blind eye to the many military expansion activities of Germany and the Baltic Republics, and tolerated the partnership between Germany and the Soviet Union was that Germany surrendered to the Bank of England.

Nowadays, part of the benefits Germany has gained from Europe and the Soviet Union are secretly stored as raw materials, and most of them are turned into gold and sent to the Bank of England. It is this gold from Germany that gives the pound the capital to compete with the US dollar, and the pound is able to maintain its strength.

But a strong pound will do no good to the UK's real economy! Because the overvaluation of the pound has resulted in high prices for British industrial products, it lacks competitiveness both internationally and domestically. Moreover, the British government stubbornly adheres to the free trade route and floods the British market with cheap industrial products from Germany and the United States.

Due to the downturn in British domestic industrial production, the unemployment rate has naturally increased, and British capitalists hope to reduce workers' wages in order to reduce costs. As a result, a nationwide wave of workers' strikes and protests were triggered in 1927, causing turmoil in the British domestic situation.

The turbulent situation has further shaken investor confidence in the pound and the British economy. Starting in 1927, the pound faced a serious crisis.

"The British are too incompetent," Hitler said with a groan. "With the support of our Germany, their gold exchange system still cannot overwhelm the American gold standard... Now, except for Germany and the Baltics, there will be There are only a few countries whose currencies are pegged to the pound, and even the British’s own dominions, Canada and Australia, are beginning to waver and prepare to implement the gold standard.”

"Faced with an opponent like the U.S. dollar, Britain must unite the whole of Europe to win." Hersman said with gloating, "Unfortunately, the British have never thought of uniting Europe. Their thinking for hundreds of years has been to mess up Europe. mainland."

For Europe, the UK is a troublemaker and is unwilling to unite Europe at any time, even if this unity is achieved under the leadership of the UK. In the future of the greater European Union, the British will play a negative role. In the 1920s, the British also did not consider bringing Europe together to jointly deal with threats from the United States and the Soviet Union.

"The current rise in the U.S. stock market, the struggles of British workers, and the vacillation of British Commonwealth Dominions such as Canada and Australia are actually part of a currency war." Hersman sold his views to Hitler, " The purpose is to get gold out of the UK and into the US... Even with our help, the UK hasn't deposited much gold over the past few years, so their debt to the US hasn't gone down much."

Since Britain was unable to unite the entire Europe, it naturally could not exert much pressure on the United States on the issue of "war debts." Not much of the compensation obtained through the "Keynes Plan" was sold to the United States. Instead, it was sold nearby in Europe, and the gold obtained was used to repay "war debts."

However, the main reason why this debt repayment model was maintained was that U.S. capital continued to flow into European countries in large quantities from 1923 to 1927 for the purchase of bonds and direct investment.

In other words, there is such a cycle on both sides of the Atlantic: U.S. gold flows into European countries for investment - gold from European countries flows into countries such as Britain, France and Belgium through the purchase of "compensations" and trade with Germany - Britain, France and Belgium and other countries then invest The gold was returned to the United States.

Through such a model, the gold that Europe owes to the United States as a whole has not decreased, but has continued to accumulate and grow. Relying on gold borrowed from the United States, the economies of Germany, Italy, Belgium, Czechoslovakia, Austria, Poland and other countries have all recovered in the past few years.

But by 1927, the situation was turbulent due to large-scale workers' protests in Britain. At the same time, the U.S. economy was performing strongly and the stock market continued to rise. As a result, European funds (gold) began to flow crazily to the United States, and the pound faced a huge crisis.

Because of the "gold exchange" system, the mark is a currency pegged to the pound. The collapse of the pound also means the collapse of the mark. So the crisis in Britain will soon spread to Germany...

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