Chapter 52 6. Nazi Germany Funded by Wall Street

On January 30, 1933, Hitler was appointed Chancellor of Germany. Germany not only completely got rid of the economic disaster of hyperinflation in 1923, but also quickly recovered from the severe recession sweeping the world. Under the huge economic pressure of huge war reparations, it took only six years to equip the most powerful armed forces in Europe at an astonishing speed and launch World War II on September 1, 1939! At that time, the United States, the most powerful country in the world, was still struggling in the quagmire of the Great Recession in 1929. It was not until 1941 that the United States directly entered the war that the economic situation of the United States was fundamentally reversed.

It took only six years for Germany to quickly complete economic recovery and prepare for large-scale war. It would be completely unthinkable without strong external financial support.It is difficult to have a logical explanation for such a huge injection of foreign funds if it is not for preparing to launch a war. In fact, Wall Street was the largest source of funds for Nazi Germany. As early as 1924, when Germany's hyperinflation had just subsided, Wall Street bankers began to plan how to help Germany prepare for war.The Dawes Plan from 1924 and the Younger Plan from 1929 were for this purpose.

The Dawes plan of 1924 fit perfectly with the plans of the military economists of the German General Staff. Irving, president of General Electric of the Morgan family.Yang was also the main financial backer of the United European Investment Corporation founded by Roosevelt.This is also Owen.Yang founded the Bank for International Settlements, which coordinates partnerships among international bankers.Just like Clinton's mentor at Georgetown University, the famous historian Carlo.As Quigrey pointed out: it (the Bank for International Settlements) is creating a financial system to control the world, a (mechanism) controlled by a few people that can dominate the political system and the world economy.

From 1924 to 1931, Wall Street lent Germany a total of 138 billion marks through these two schemes, while Germany paid a total of 86 billion marks during this period In fact, Germany received a huge financial aid of 52 billion marks funded by the United States, and the entire German military industry was able to develop rapidly.As early as 1919, British Prime Minister Lloyd.George foresaw the huge indemnity that Germany could not afford in the Versailles Peace Treaty, which would inevitably lead to the Germans either defaulting on their debts or launching a war. Unfortunately, both happened in the end.

Faced with rows of new modern military factories in Nazi Germany, and looking at the rusty production workshops in the United States during the Great Recession, it is no wonder that US Congressman McFadden denounced Wall Street bankers and the Federal Reserve for using US taxpayers' money to fund Germany's war machine: Mr. Chairman, if the German Nobel Dynamite Company sells explosives to the Japanese army for use in Manchuria (Northeast China) or other places, it can settle the sales bills in US dollars and send them to the New York open discount market, and the Federal Reserve Bank will By discounting that bill and using it as collateral to issue new dollar bills, the Fed is effectively helping the German Dynamite Company by stuffing its inventory into the U.S. banking system.If this is the case, why should we send representatives to Geneva to participate in the (German) disarmament conference?Aren't the Federal Reserve Board and the Federal Reserve Banks making our government pay off the German arms companies' debts for the Japanese military?

In addition to providing low-interest, short-term financing to German and Japanese military industries in the New York discounted commercial paper market, the Fed also shipped U.S. gold reserves directly to Germany. Huge sums of money that belonged to American bank depositors were sent to Germany without any collateral.The Federal Reserve Board and the Federal Reserve Bank issued American currency solely on German commercial paper.Billions of dollars were pumped into the German economy, a process that continues today.Cheap German commercial paper was priced and rolled over here (New York) against the credit of the US government, and the American people paid for it.On April 27, 1932, the Federal Reserve shipped $750,000 worth of gold that belonged to the American people to Germany.A week later, another $300,000 in gold was sent to Germany in the same way.As much as $12 million in gold was shipped to Germany by the Federal Reserve Board and the Federal Reserve Bank in mid-May alone.Almost every week there is a gold carrier bound for Germany.Mr. Chairman, I believe savers in Bank of America have a right to know what the Federal Reserve is doing with their money.

In addition to the huge funding from Wall Street, Hitler's financial system reforms also played a considerable role, the most critical of which was the withdrawal of the right to issue currency from the German private central bank.After getting rid of the low-efficiency and high-consumption procedure of using national debt as collateral to issue currency, the German economy soared like a rocket. Germany's unemployment rate was as high as 30% in 1933, and by 1938 There was a labor shortage. It was no secret that American companies provided Germany with enormous technological and financial support, which later historians interpreted as accidental or short-sighted.It was these accidental short-sightednesses that greatly increased the productive capabilities of the German military industry.

In 1934, Germany's oil production capacity was 300,000 tons of natural oil and 800,000 tons of synthetic gasoline (coal-to-oil), and the rest was completely dependent on imports.After the US Standard Oil Company's hydrogenated petroleum patent was transferred to Germany, by 1944, Germany was able to produce 5.5 million tons of synthetic gasoline and 1 million tons of natural petroleum. Although the German military planning department required industrial enterprises to install modern production equipment for large-scale production, German military economic experts and industrial enterprises did not fully understand the meaning of large-scale production until the two major U.S. automobile production plants set up a After entering the European market and establishing a new factory in Germany, it opened their eyes.German experts were sent to Detroit to learn the expertise and assembly line work of module production.German engineers were allowed to visit not only aircraft factories but other important military installations, from which they learned a great deal of technology that they would eventually use against the United States.

American companies that maintained close cooperation with the German military industrial production system also included General Motors, Ford Motor, General Electric, DuPont, etc., all of which belonged to Morgan Bank, Rockefeller Chase Bank or Warburg's Manhattan Bank.