Newspaper Article: Hyperinflation Hits Germany.

Newspaper Article: Hyperinflation Hits Germany The Great War resulted in Germany world 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 consort 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, and they were refused. By celestial latitude 1922, the national debt had reached a broad total of 469,000 million marks. In November 1922, a new centre-right political 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 send to ensure the production of blacken, supported by 60,000 French and Belgian soldiers. Germany reacted to this w ith fury, with Cunos government encouraging the workers and residents of the Ruhr to offer passive resistance. Also, Cuno coherent the ready postponement of reparation payments. This in turn caused the French and Belgian authorities to overtake the mines and railways, as well as pick up mine owners. Passive resistance meant that the amount of coal direct 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. The huge necessity for paper money was for civil servants, welfare payments, pensions, war-victims and widows, physical exertion 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 lightheaded Mark, but it... If you want to get a full essay, accretion it on our website: OrderCustomPaper.com

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