German Hyperinflation

German-hyperinflation

The Treaty of Versailles forced Germany to pay reparations for causing World War I which was finally paid in full in 2010. Affected countries demanded gold, manufactured goods, and other means of back payment which collapsed the German economy. To fix this economic downturn the German government borrowed money and printed enormous amounts of currency which inevitably caused and lead to hyperinflation. In 1919, ℳ4.00 papiermarks would buy a loaf of bread, but by 1923, a loaf of bread cost ℳ650,000,000 (650 million) papiermarks. The value of money deteriorated so greatly that restrooms of establishments had to post signage asking patrons to use toilet paper instead of currency as the currency was clogging the toilets and plumbing system. The economic collapse of the German state allowed Adolf Hitler to rise to power and the depression experienced by Germany effectively guaranteed the occurrence of World War II

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