after the failure of the first World War in Germany, the domestic economy once fell sharply. Everyone said that all this was finally solved. Hitler erected a lighthouse for the confused Empire at that time, so the person who lit the light should be yarma shaht, who was called the “economic genius” at that time. Why do you say that? Now let’s get to know each other.
banker, economist and Minister of economy, who was famous for curbing the devastating inflation threatening the survival of the Weimar Republic from 1922 to 1923. He once served as the Minister of economy of Hitler’s Nazi government (1934-1937). After the war, he was acquitted and committed to post-war reconstruction and providing advice for the economic development of developing countries. It is also an important member of a few defeated countries that have not been prosecuted after the war.
after the first World War, Germany lost one tenth of its population and one seventh of its land, and the Germans under the pressure of 132 billion gold marks were out of breath. At the same time, France and Belgium took advantage of the fire, resulting in the “Ruhr crisis”, forcing the German government to “drink poison to quench thirst” – issue more paper money. As soon as the printing machine accelerates, banknotes rush to the market like a tide, and rocket inflation is out of control. The ratio of US dollar to mark has collapsed from 1:64 in January 1921 to 42 billion in November 1923. We have seen a historical picture in history textbooks: children squatting on the side of the road and playing with bundles of banknotes. This picture comes from Germany in that period.
in November 1923, Schacht was appointed as the national currency Commissioner of Germany. Just one month, the hyperinflation that lasted for three years at the end of 1923 was alleviated and controlled. If Hitler used a doctrine to save Germany in November 1923, Schacht used a policy to save Germany.
in the winter of that year, they started their own struggle for the same goal in different fields. Eight years later, they finally came together and created a great miracle for the German nation. More than 20 years later, Hitler mysteriously disappeared in the basement, while shaht calmly sat in the International Court of justice to accept the Nazi trial, and then was acquitted. More than 30 years later, the shadow of Hitler has not disappeared. Schacht has returned to the German financial sector and created an economic miracle for Germany, which was too miserable after the war.
if Hitler erected a lighthouse for the confused Germans after World War I to illuminate the road of rejuvenation, then shaht was the lighthouse lighter. He has no sensational language, no wonderful speech, more practical and precise financial operation. Compared with Hitler with artistic temperament, he is more like a scholar and more like a scientist. As we all know, no matter how strong the government and army are, they can’t do without “money”!
without the support of financial forces, the government “fooled” by Hitler could not solve the actual problems of Germany at all, then his regime would become the second short-lived Weimar government, which quickly disappeared into the disappointment and curse of the people, and it would be impossible to start the Second World War. However, Schacht let Hitler’s promises to the people be fulfilled one by one…
there is no doubt that whether it is saving Germany’s economic crisis after World War I or providing strong financial support for Hitler’s establishment of the world’s first army; Whether acquitted on the Nazi bench or rebuilding the German economy in the ruins after World War II… These are impossible tasks. But shaht can do it! Therefore, shaht is called the chief magician of Financial Street.
Keynes was a famous economist in history. He was famous in the 1920s and was about the most famous economic figure in this era. He is not only an important economic adviser to the British government, but also the chairman of the national mutual life insurance company. Its annual report to shareholders has always been a must read and preemptive news for people in European financial circles.
in addition, he attended the Paris peace conference as the chief representative of the British Treasury in 1919. At the Paris peace conference, he took a more pro German position and resigned as the representative of the conference because the amount of compensation from Germany was too large. Later, he published a book “the economic consequences of peace”, which made quite pessimistic expectations for post-war Europe. When the book was published, the British media called him a traitor because of his pro German attitude, then Chancellor of the exchequer Austin Chamberlain also accused him of betraying the trust of the motherland.
but by 1923, the pessimistic predictions in this book were coming true! Instead of benefiting from punishing Germany, the European economy is heading for collapse – Germany was an important engine of the European economy before the war. Losing Germany means that the European economy has lost at least one third of its growth momentum. Moreover, there is a certain correlation between the German economy, the French economy and the British economy.
the general strike caused by the occupation of Ruhr district by France and Belgium not only led to the collapse of the German economy, but also caused losses to the economies of France and Belgium – the Rhine River and German railway system are important channels of international trade in Europe, and coke from Germany is also an important raw material for the steel industry of France and Belgium. Now they have all been lost. The tide of social revolution began to roll again in 1922 and 1923. This time, it was not Bolshevism, but fascism! With the fulfillment of Keynes’ predictions one by one and the rise of the dispute between “gold standard” and “Gold Exchange”, Keynes once again became the most influential economist in Britain – behind the so-called “gold standard” and “Gold Exchange”, it is actually the US dollar and Sterling competing for the status of international reserve currency.
because the United States has the largest gold reserves in the world, it actively promotes the restoration of the gold standard in order to let the US dollar replace the British pound. The UK hopes to use the system of linking the currencies of European countries to the pound and the pound to gold to consolidate the international reserve of the poundReserve currency status. Whether Germany can be saved is a touchstone for the two monetary rules of “gold standard” and “Gold Exchange”. At the same time of the political upheaval in Germany, an important meeting related to the future destiny of the whole Europe is also under way in the chairman’s office of the headquarters of the national mutual life insurance company in London. Only two people attended the meeting, Keynes and Dr. Schacht, who came all the way from Germany.