Massive Inflation in Germany  First world war essentially ruined Germany  Industrial output was lost and going toward reparations  They PRINT MONEY= BAD IDEA (But what else do you do?)  Have to stop paying reparations to France and Belgium..

Belgium and France are Super MadBelgium and France are Super Mad  Jan : French and Belgian troops march into the Ruhr. Ruhr produces most of the coal and steel in Germany. Take reparations for themselves.  Germany HATES the French. Government and people rally against them. Shut down the Ruhr and stop work in all industries and transport.  Germany pays for people to sustain themselves in the Ruhr by PRINTING MORE MONEY.  MORE INFLATION!

Gustav StresemannGustav Stresemann  Gustav Stresemann was the new Chancellor as of Sept  He called off the “passive resistance” in the Ruhr.  Announced that Germany would continue with the reparation payments- Thus France and Belgium leave the Ruhr.  Wanted to establish a new trustworthy currency: Reichsmark  NATIONALISTS FREAK OUT  Is known for ending inflation and creating the short “Golden Years” for the Republic.

Germany’s Depression  Only the wealthy escape this depression as their land and businesses just increase in value as inflation increases. They have assets- not just money.  Middle and lower class people could not buy anything.  MIDDLE CLASS GETS HIT THE HARDEST: In times of strife and struggle, people tend to turn to aggressive leadership.  ENTER HITLER

Hitler  Austrian  Fought for Germany in WWI  Super mad about the armistice and the Treaty of Versailles.  Wants to bring back the proud Germany  Head of the National Socialist German Workers Party (NAZIS)  SMART ENOUGH TO PLAY OFF THE PEOPLES SENTIMENTS.