Where does Money come from?
We always hear from our parents, our schools, our doctors, our politicians, our Bosses, and even from our friends.
Where is the money going to come from?
What caused inflation in Germany in the 1920s?
Although the inflation was rooted in the huge debt that Germany had amassed in financing its war effort, the hyperinflation of 1923 was triggered by the French-Belgian military occupation in January 1923 of the German industrial district in the Ruhr valley.
Invasion. In January 1923, the French and Belgian armies sent 60,000 soldiers into the Ruhr region of Germany. The French aimed to extract the unpaid reparations and took control of key industries and natural resources. The Weimar Government instructed the Ruhr workers to go on strike, instead of helping the French.
The occupation of the Ruhr lead to significant shortages of goods and food, and as these were rationed prices rose. A general rise in prices is referred to as inflation. As a result of this, it meant that people had to spend more of their pay packets on essentials.
At this point, farmers often hoarded their produce and resisted supplying food to the stores unless they were paid by foreign, or as they were now referred to as, “hard currency.”
What really caused the inflation was the lack of confidence in the Government.