Professional Soldiers ® - View Single Post - Avoiding the ‘Fiscal Cliff’ May be as Painful as Going Over It

mark46th · 11-20-2012, 09:59

Here is how Germany solved its financial crisis after World War I...
The solution
With Germany on its knees, the government finally acted. A new centre-right government had been established in August 1923 led by Gustav Stresemann, a renowned politician of the liberal right-wing German People's Party. The German government realized eventually that it would be unable to defeat the French and Belgian invasion, and would have to accept the agreed reparations. Resistance to the French and Belgian forces was abandoned. Reparation payments were restarted, and economic stability was re-established. In November 1923 the government called a halt to new currency issues of marks. A new currency, the Rentenmark, backed by land and property was created. The new government led by Stresemann realised the mistakes made in the past and tried to solve them. Each Rentenmark was exchangeable for 1 trillion old marks with a limit of 2.4 billion Rentenmarks to be issued. The government also cut its expenditure, partly by sacking around 700,000 employees.

11-20-2012, 09:59	#4
mark46th Quiet Professional Join Date: Sep 2007 Location: Orange, Ca. Posts: 4,950	Here is how Germany solved its financial crisis after World War I... The solution With Germany on its knees, the government finally acted. A new centre-right government had been established in August 1923 led by Gustav Stresemann, a renowned politician of the liberal right-wing German People's Party. The German government realized eventually that it would be unable to defeat the French and Belgian invasion, and would have to accept the agreed reparations. Resistance to the French and Belgian forces was abandoned. Reparation payments were restarted, and economic stability was re-established. In November 1923 the government called a halt to new currency issues of marks. A new currency, the Rentenmark, backed by land and property was created. The new government led by Stresemann realised the mistakes made in the past and tried to solve them. Each Rentenmark was exchangeable for 1 trillion old marks with a limit of 2.4 billion Rentenmarks to be issued. The government also cut its expenditure, partly by sacking around 700,000 employees.
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