The central banker who resuscitated Germany's dead economy after WWI

Hjalmar Schacht, President of the German Central Bank (Reichsbank) from 1933 to 1939

When researching monetary history for my #bitcoindollar book, I came across a very interesting and little-known (and well hidden) topic in monetary history.

This is the role played by Hjalmar Schacht as the President of the German Central Bank (Reichsbank) from 1933 to 1939. At the time the economic situation in Germany was dire. Stocks of raw materials had been depleted, factories and warehouses lay empty, and about 6.5 million people (about 25% of the domestic workforce) were poor, unemployed and on the verge of malnutrition, while the country was crushed by debt (the effects of the punitive damages imposed by the WWI Treaty of Versailles) and its foreign exchange reserves approached zero.

Yet, from 1933-1938, thanks to Schacht, the economy recovered spectacularly and Germany was again Europe’s powerhouse. How was this achieved? By issuing monetary instruments for each unit of labour performed (non-inflationary). The linked article explains well how the MEFO German Debt Bills worked. The key takeaway is that “fiat money creation” is not inherently bad and inflationary, but it depends on whether it is used for productive investment (non inflationary) or for consumption (inflationary).

https://cepr.org/voxeu/columns/macroeconomics-germany-forgotten-lesson-hjalmar-schacht

The other interesting aspect of this topic is its historical context. This is however much more controversial, difficult to analyze and fully comprehend. It is indeed a fact that Germany’s economic renaissance was achieved without the country getting into debt with the financial/banking cartel which was (and still is) predominantly Jewish. The precedent was dangerous for the “predatory” cartel and whether the “war of Judea” on Germany began before Germany’s war against “Judea” is today difficult to ascertain.

Judea decalres War on Germany - March 1933 The Daily Express

There is however a universally acknowledged historical precedent to consider: during WWI, in 1916, while Germany had already gained the upper hand, it proposed generous peace terms to Britain, which were refused. The reason, it is argued, was that Jewish bankers (some of whom were also among the key founders of the U.S. Federal Reserve in 1913) offered to broker the entrance of the United States into WWI on the side of Britain to crush Germany and its ally, the Ottoman Empire, which then controlled Palestine. In exchange, Palestine was to become the promised land for the Jews. Thanks to Rothschild’s efforts, this came to pass in 1917 with the Balfour Declaration.

On the influence that the Jewish banking cartel had on all such events, Henry Ford’s 1921 four volume book “The International Jew” is worth reading.

Since we can all observe today how recent events—about which we still have vivid factual recollection—are being rewritten and manipulated in real time into convenient narratives incessantly promoted as mainstream only “truths” (Saddam Hussein’s WMDs; the “liberations” of Libya and Syria; the “unprovoked” Russian aggression; Israel’s right to obliterate Gaza for self-defense; Iran’s nuclear weapons capability and Israel’s corresponding “rightful” aggression), it is legitimate to question whether the true history of WWI and WWII is accurately portrayed in school textbooks.