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The Great German Inflation – that was the real revolution.

January 20th, 2010 by Viv

Writing about the German Inflation of 1923, Otto Friedrich, Time Magazine editor, wrote in his book titled Before The Deluge:

“The fundamental quality of the disaster was a complete loss of faith in the functioning of society.

“Money is important not just as a medium of exchange, after all, but as a standard by which society judges our work, and thus ourselves. If all money becomes worthless, then so does all government, and all society, and all standards.

“In the madness of 1923, a workman’s work was worthless, a widow’s savings were worthless, everything was worthless.”

English historian, Alan Bullock, wrote in his book titled Hitler: A Study in Tyranny:

“The collapse of the currency not only meant the end of trade, bankrupt businesses, food shortage in the big cities and unemployment: it had the effect, which is the unique quality of economic catastrophe, of reaching down to and touching every single member of the community in a way which no political event can.

“The savings of the middle classes and the working classes were wiped out at a single blow with a ruthlessness which no revolution could ever equal.

“The result of the inflation was to undermine the foundations of German society in a way which neither the war nor the revolution of November 1918, nor the Treaty of Versailles had ever done.

“The real revolution in Germany was the inflation, for it destroyed not only property and money, but faith in property and the meaning of money.”

Ronald Kitching
Frenchville QLD 4701

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