# Think Tank > History >  How did Hitler reflate the German economy without inflation?

## Paul.Bearer.of.Injustice

I don't see how all that government spending pumped into the economy didn't result in massive inflation, per Austrian theory.
What was Hitler's secret, or did he just get lucky?

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## tmosley

IIRC, they had really bad inflation, something like 40-60%/year.  They also seized a lot of wealth from the countries they invaded, and from certain sectors of their society.

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## Anti Federalist

> IIRC, they had really bad inflation, something like 40-60%/year.  They also seized a lot of wealth from the countries they invaded, and from certain sectors of their society.


The massive runaway inflation of the old Wiemar republic was one of the reasons Hitler was able to rise to and consolidate power.

You're right, the rest fell into place from war, invasion and "asset forfeitures".

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## stag15

It must be nice when you can print money and take over private companies with ease.  Oh wait, that is our government.

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## Anti Federalist

> It must be nice when you can print money and take over private companies with ease.  Oh wait, that is our government.


Don't forget invading, annexing and occupying other countries.

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## stag15

> Don't forget invading, annexing and occupying other countries.


At least we don't go that far.

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## tmosley

They got nukes now.  Can't invade any of the worthwhile countries anymore.

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## theoakman

> I don't see how all that government spending pumped into the economy didn't result in massive inflation, per Austrian theory.
> What was Hitler's secret, or did he just get lucky?


Hitler wasn't in power all that long.  He created an artificial boom and started marching into other countries to pillage their wealth before his economy showed signs of weakness.  This was even easier given the fact that the rest Europe was in recession.  Had Hitler not invaded, he probably had a few years before his economy collapsed.

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## Paul.Bearer.of.Injustice

Hitler took over in 1933, and by the time he invaded other countries (Austria in early 1938) there was no sign of inflation and little unemployment. 
To assume the economy would have collapsed without the invasion of Austria or Czechoslovakia isn't all that convincing. Those aren't exactly prized possessions like Switzerland.
What about all the wealth "saved" by the issuing of Treasury Certificates as opposed to interest bearing Reichsbank Marks? I think it has more to with this.

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## Bossobass

Hitler got wise to the Rothschild's scheme and ordered his own debt free notes to be printed with no interest called Labor Treasury Certificates to fuel the public works.

Article: http://www.fourwinds10.com/siterun_d...p?q=1217011692

Excerpt:




> Or so it seemed. Hitler and the National Socialists, who came to power in 1933, thwarted the international banking cartel by issuing their own money. In this they took their cue from Abraham Lincoln, who funded the American Civil War with government-issued paper money called "Greenbacks." Hitler began his national credit program by devising a plan of public works. Projects earmarked for funding included flood control, repair of public buildings and private residences, and construction of new buildings, roads, bridges, canals, and port facilities. The projected cost of the various programs was fixed at one billion units of the national currency.
> 
> One billion non-inflationary bills of exchange, called Labor Treasury Certificates, were then issued against this cost. Millions of people were put to work on these projects, and the workers were paid with the Treasury Certificates. This government-issued money wasn't backed by gold, but it was backed by something of real value. It was essentially a receipt for labor and materials delivered to the government. Hitler said, "for every mark that was issued we required the equivalent of a mark's worth of work done or goods produced." The workers then spent the Certificates on other goods and services, creating more jobs for more people.
> 
> Within two years, the unemployment problem had been solved and the country was back on its feet. It had a solid, stable currency, no debt, and no inflation, at a time when millions of people in the United States and other Western countries were still out of work and living on welfare. Germany even managed to restore foreign trade, although it was denied foreign credit and was faced with an economic boycott abroad. It did this by using a barter system: equipment and commodities were exchanged directly with other countries, circumventing the international banks. This system of direct exchange occurred without debt and without trade deficits.
> 
> Germany's economic experiment, like Lincoln's, was short-lived; but it left some lasting monuments to its success, including the famous Autobahn, the world's first extensive superhighway. Hjalmar Schacht, who was then head of the German central bank, is quoted in a bit of wit that sums up the German version of the "Greenback" miracle.


Bosso

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## theoakman

> Hitler took over in 1933, and by the time he invaded other countries (Austria in early 1938) there was no sign of inflation and little unemployment. 
> To assume the economy would have collapsed without the invasion of Austria or Czechoslovakia isn't all that convincing. Those aren't exactly prized possessions like Switzerland.
> What about all the wealth "saved" by the issuing of Treasury Certificates as opposed to interest bearing Reichsbank Marks? I think it has more to with this.


Umm, when you have an economy that bottomed from hyperinflation for the better part of a decade and it comes back for 5 years under an authoritarian government doesn't mean it's sustainable.  Government planned economies NEVER work in the long run and Hitler's would have collapsed sooner rather than later.  You know, there was no sign of inflation or unemployment in 1929 either....  Or 1998....  As an economist, you have to be forward looking.  That's why I said "before his economy showed signs of weakness".  Just because everything appears rosy, doesn't mean it is.  If you believe otherwise, you'd make a great tyrant.

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## CMoore

I have made the argument before that the character of the German people was also a factor in the recovery of the German economy.  These are very industrious hard working people.  When you have a group of people with the work ethic of Germans, it is hard not to prosper.  They are intelligent and know the value of an education also.  Give them half of an opportunity and they will rise up and pull themselves up by their boot straps.  That they came back after WWI with no help from anyone is a testament to their ability to overcome.  They had no foreign aid, and everytime they turned around some other country was kicking them back.  Of course these factors facilitated the rise of an Adoph Hitler, so since then we have been a little more careful about how we have treated those whom we have vanquished in war.  We don't want to see a repeat of the Third Reich.

There is a story that is told about the Germans who came to Alabama after the war to work in the space program in Huntsville.  As the story goes, a big group came over and one of the first things they all did was go and sign up for library cards.  I don't know if that story is true or not, but I can believe it.

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## Dieseler

Excuse me if I'm wrong.
I believe he issued debt free interest free money for the labor of the German people.
In short, he kicked the International Banksters the $#@! out of the loop.

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## Dieseler

I found this elsewhere.




> Hitler’s freedom from International Debt Slavery
> 
> It is always difficult to have a discussion on the topic of WW II Germany, and Hitler, without having emotions run high.And Understandably so. We do not believe that there is a world plot in place by those of the Jewish faith to dominate the world. We do however suspect that there is a plot in place by the major financiers and financial institutions, to control.
> 
> History is written by the victors” - W. Churchill
> 
> An interesting perspective on World War II, and the players involved.
> 
> Many people take joy in saying Wall Street and Jewish bankers “financed Hitler.” There is plenty of documented evidence that Wall Street and Jewish bankers did indeed help finance Hitler at first, partly because it allowed the bankers to get rich (as I will describe below) and partly in order to control Stalin. However, when Germany broke free from the bankers, the bankers declared a world war against Germany.
> ...



All of that sounds frighteningly familiar doesn't it?
Deja voodoo, I smell a set up.
Never mind,  Americans as a whole don't have that kind of work ethic.
Or do we?
Do we have a leader with Hitleresque potential?
Our Government would never kick the Banksters out.
Or would they?

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## Paul.Bearer.of.Injustice

> Umm, when you have an economy that bottomed from hyperinflation for the better part of a decade and it comes back for 5 years under an authoritarian government doesn't mean it's sustainable.  Government planned economies NEVER work in the long run and Hitler's would have collapsed sooner rather than later.  You know, there was no sign of inflation or unemployment in 1929 either....  Or 1998....  As an economist, you have to be forward looking.  That's why I said "before his economy showed signs of weakness".  Just because everything appears rosy, doesn't mean it is.  If you believe otherwise, you'd make a great tyrant.



Nothing "works" in the long run. Stars explode, Sequoias die, Sphinxes erode.

I was merely pointing out that your assessment of pillaging wealth from Slovakia and Austria wasn't convincing as an argument for the economy not collapsing by 1938. 

Now your reasoning is "oh, I just know because I'm a great economist, and if you don't believe me you're stupid."

Who's the tyrant?

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