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History
See other History Articles

Title: Hitler's Monetary System
Source: Rense
URL Source: http://www.rense.com/general77/hitn.htm
Published: Jul 15, 2007
Author: Rense
Post Date: 2007-07-15 00:50:08 by robin
Keywords: None
Views: 1651
Comments: 85

Hitler's Monetary System 7-14-7

"We were not foolish enough to try to make a currency coverage of gold of which we had none, but for every mark that was issued we required the equivalent of a mark's worth of work done or goods produced. . . .we laugh at the time our national financiers held the view that the value of a currency is regulated by the gold and securities lying in the vaults of a state bank." -Adolf Hitler, 1937 (CC Veith, Citadels of Chaos, Meador, 1949.)

"And it proved sound. It worked. In less than ten years Germany became easily the most powerful state in Europe. It worked so magically and magnificently that it sounded the death knell of the entire (Zionist) Jewish money system. World Jewry knew that they had to destroy Hitler's system, by whatever means might prove necessary, or their own [system of usury] would necessarily die. And if it died, with it must die their dream and their hope of making themselves masters of the world. The primary issue over which World War II was fought was to determine which money system was to survive. At bottom it was not a war between Germany and the so-called allies. Primarily it was war to the death between Germany and the International Money Power." --William Gayley Simpson, 'Which Way Western Man' (p.642)

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#8. To: robin, all (#0)

I'm sorry, I don't know alot about this, but what about the insane amount of inflation they had?

wudidiz  posted on  2007-07-15   7:51:21 ET  Reply   Untrace   Trace   Private Reply  


#9. To: wudidiz (#8)

The insane inflation experienced in germany was in the 1920's. the NAZIs came to power in 1932. The NAZIs very quickly brought great prosperity to ordinary germans. The innovations they had in money creation were enormously successful.

another period in history where this same thing was done is in pre-1750 America. back then each colony created its own money from thin air. but it was the colony's government that did it, not a private bank. they would lend the money out for home-building and business-building. and then whoever borrowed the money had to pay it back, but paid it back without interest. In this way the Americans were able to build real prosperity & wealth for the people very quickly. It is this innovation that allowed the Americans to win the Revolutionary war. Just as the same type of innovation allowed germany to build itself up very quickly and do so well in the war as they did against so many opponents.

Red Jones  posted on  2007-07-15   8:28:05 ET  Reply   Untrace   Trace   Private Reply  


#20. To: Red Jones, robin (#9)

The insane inflation experienced in germany was in the 1920's. the NAZIs came to power in 1932. The NAZIs very quickly brought great prosperity to ordinary germans. The innovations they had in money creation were enormously successful.

This prosperity was due to the exertions of Dr. Schacht the German Finance Minister. After Hitler came to power, the world banks were trying to force their way in but Schacht kept them out.

In 1938 when Hitler was intent on using his armaments for aggressive war, Schacht refused to go along with it and was sacked. In 1943 Schacht was imprisoned on orders from Hitler.

After WW2, I was friends with Dr. Schachts Godson for many years. He had lived with Schacht during the 1920s and 1930s.

Cynicom  posted on  2007-07-15   9:37:43 ET  Reply   Untrace   Trace   Private Reply  


#21. To: Cynicom (#20)

After Hitler came to power, the world banks were trying to force their way in but Schacht kept them out.

In 1938 when Hitler was intent on using his armaments for aggressive war, Schacht refused to go along with it and was sacked. In 1943 Schacht was imprisoned on orders from Hitler.

He must have been a good man, Schacht.

robin  posted on  2007-07-15   9:40:51 ET  Reply   Untrace   Trace   Private Reply  


#24. To: robin (#21)

Some history of the Weimar hyperinflation.

In November 1923, a currency reform was undertaken. A new bank, the Rentenbank, was created to issue a new currency--the Rentenmark. This money was exchangeable for bonds supposedly backed up by land and industrial plant A total of 2.4 billion Rentenmarks was created, and each Rentenmark was valued at one trillion old paper marks. From that moment on the depreciation stopped--the Rentenmarks held their value; even the old paper marks held stable. Inflation ceased.

What was the secret of the "miracle of the Rentenmark"? After all, the new currency was not redeemable in anything. Its backing by real property was a fiction, since there was no way by which property could be foreclosed or distributed. Further, there we have the government distributing a vast new supply of money--2.4 billion trillion in terms of the old mark. Ought that not have led to a new wild inflation?

To understand this, we must recall that the real value of the money circulating in late 1923 was small--equal to a mere 168 million pre-war gold marks. The continued depreciation at this point was due to utter lack of confidence--to the belief that the printing presses would run indefinitely. But actually there was a great shortage of and need for money. New money could be introduced without price inflation if only people had confidence in it. How was confidence developed?

First, the government announced that the new currency would be "wertbestaendig"--stable in value. In their hunger for usable money people accepted this, at least until it should be proven false. Then the property backing seemed to give the currency value. True, the Assignats of the French Revolution, backed by fixed property, had depreciated, but still the backing helped.

Second, and certainly most important, the government limited strictly the amount of Rentenmarks which could be issued and it halted the issue and discounting of notes and the creation of paper marks. Finally, after April 1924, the Reichsbank stopped the expansion of credit to businesses which had been stimulating inflation. Businessmen were required to repay loans in gold marks, equal to the original value of the loan. Thereafter, incentive was gone to borrow except for legitimate needs.

Thus, the Rentenmark replaced the Papiermark. Due to the economic crises in Germany after the Great War there was no gold available to back the currency. Therefore the Rentenbank, which issued the Rentenmark, mortgaged land and industrial goods worth 3.2 billion Rentenmark to back the new currency. The Rentenmark was introduced at a rate 1 United States dollar = 4.2 RM.

The Rentenmark was only an intermediate currency and was not legal tender. It was, however, accepted by the population and effectively stopped the inflation. The Reichsmark became the new legal tender on 30 August 1924, equal in value to the Rentenmark.

The monetary policy spear-headed by Hjalmar Schacht - the Central Banker - together with the fiscal policy of German Chancellor Gustav Stresemann and Finance Minister Hans Luther brought the inflation in Germany to an end.

The Rentenbank continued to exist after 1924 and the notes and coins continued to circulate. The last Rentenmark notes were valid until 1948.

DeaconBenjamin  posted on  2007-07-15   9:57:56 ET  Reply   Untrace   Trace   Private Reply  


#27. To: DeaconBenjamin, aristeides, Red Jones, noone222, Cynicom (#24)

Most informative post and easy to follow. Thank you!

robin  posted on  2007-07-15   10:07:30 ET  Reply   Untrace   Trace   Private Reply  


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