Newspaper Article: Hyperinflation Hits Germany.

Newspaper Article: Hyperinflation Hits Germany The Great War resulted in Germany being plunged into debt, owning a amount of money of 144,000 million marks by 1919. The Treaty of Versailles, excessively from 1919, did not help this, with Germany owing the affiliate a total of 20,000 billion gold marks in reparations, the sum having been eventually set in May 1921. In July 1922, the German disposal asked the Allies to suspend the reparation payments, plainly they were refused. By celestial latitude 1922, the national debt had reached a spacious total of 469,000 million marks. In November 1922, a new centre-right governmental relation came to power, led by Wilhelm Cuno. This new government face up a major financial crisis. Germany failed to pay reparations in 1922, and in response to this, the french invaded the Ruhr region, in the South of Germany. cut engineers were displace to ensure the production of blacken, supported by 60,000 French and Belgian soldiers. Germany reacted to this with fury, with Cunos government encouraging the workers and residents of the Ruhr to offer passive resistance. Also, Cuno coherent the conterminous postponement of reparation payments. This in turn caused the French and Belgian authorities to overtake the mines and railways, as well as sensory mine owners. Passive resistance meant that the amount of coal send to France and Belgium was significantly reduced.

However, the cost to Germany itself was immense. In Germany in 1923 thither was such(prenominal) a high demand for paper money that there were three hundred paper mills running 24hrs a day. Th e huge demand for paper money was for civil ! servants, welfare payments, pensions, war-victims and widows, physical sudor programmes and subsides, and industry and business inducements. As said before the Ruhr crisis was a huge cause of hyperinflation and came as the final blow to the shaky Mark, but it... If you want to get a full essay, accrual it on our website: OrderCustomPaper.com

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